Be tailored to the specific needs of an individual decision maker.Ĩ.

View the entire organization as the reporting entity.

Focus upon the operation results of the most recently completed accounting period.

Be used by decision makers outside of the business organization.

Notes containing additional information that is useful in interpreting the financial statements.ħ.In comparison with a financial statement prepared in conformity with generally accepted accounting principles, a managerial accounting report is more likely to:.

Statement of projected cash flows for 2000.

Income statement for the year ended December 31, 1999.

Information may be tailored to assist in specific managerial decisions.Ħ.A complete set of financial statements for Hartman Company, at December 31, 1999, would include each of the following, except:.

Information must be developed in conformity with generally accepted accounting principles or with income tax regulations.

Its purpose is to assist managers in planning and controlling business operations.

Reports are used primarily by insiders rather than by persons outside of the business entity.

Government agencies such as the Internal Revenue Service.ĥ.All of the following are characteristics of managerial accounting, except:.

Although accounting information is used by a wide variety of external parties, financial reporting is primarily directed toward the information needs of: The information is generated by a computer-based accounting system.Ĥ.The value of the information exceeds the cost of producing it.The information is based upon historical costs, rather than upon estimated market values.The information aids management in controlling costs.Meet an organization's need for accounting information as efficiently as possible.Record changes in the financial position of an organization by applying the concepts of double-entry accounting.

Provide as much useful information to decision makers as possible, regardless of cost.Develop financial statements in conformity with generally accepted accounting principles.In either monetary or nonmonetary terms, depending upon the need of the decision maker.Ģ.The basic purpose of an accounting system is to:.Primarily for the benefit of persons outside of the business organization.For corporations, but not for sole proprietorships or partnerships.

Only for publicly owned business organizations.

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