The Practice by Accountants of Focusing on a Business Separetely

question 51

Multiple Choice

The practice by accountants of focusing on a business separetely from its owners is the ""entity principle.""

• A) Financial accounting is more focused on the needs of outside investors than is management accounting.
• B) Management accounting is more likely to use subjective information than is financial accounting.
• C) Financial accounting tends to deal with more detailed information about parts of the company, while managerial accounting is more summarized.
• D) Unlike financial accounting reports, managerial accounting reports often involve reports on variances from budget.

---

Definitions:

Owned By Government

Refers to assets, enterprises, or entities that are fully or majorly owned and operated by a government.

Henry Ford

Henry Ford was an American industrialist and the founder of the Ford Motor Company, known for revolutionizing the automobile industry through the introduction of mass production techniques.

Pays Wages

The process by which employers compensate their employees for work performed, typically in the form of monetary payment.

Employer

An individual or entity that hires and pays people to work on their behalf, often to produce goods or provide services.