For Each of the Characteristics Below, Identify Whether It Is

question 126

Short Answer

For each of the characteristics below, identify whether it is a focus of financial accounting or managerial accounting. Use the letter F to identify financial accounting and M to identify managerial accounting.
1. Users are generally investors, creditors, analysts, and regulators.
________ 2. Used to assist managers in making planning and control decisions.
________ 3. Information is structured and controlled by GAAP.
________ 4. Information is available quickly without the need to wait for an audit.
________ 5. Information is mainly historical with some predictions.
________ 6. Emphasis of the information is a company's projects, processes, and divisions.
________ 7. Information is mostly monetary, but includes nonmonetary information.

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Definitions:

Market Rate

The prevailing price or interest level determined by the supply and demand dynamics in a competitive marketplace.

Journal Entry

A record of a financial transaction in the accounting system that includes the date, accounts affected, amounts, and description of the transaction.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified price, usually at a premium to the face value.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar credit risk and maturity.