For Each of the Following, Indicate Whether the Statement Relates

question 76

Essay

For each of the following, indicate whether the statement relates to managerial accounting (MA) or financial accounting (FA):
$\begin{array}{l|l}\text { Statement } & \begin{array}{c}\text { Applies to } \\\text { MA or FA }\end{array} \\\hline \text { How reports will affect employee behavior is a } & \\\text { concern. } & \\\hline \text { Summary reports are prepared primarily on the } & \\\text { company as a whole, usually on a quarterly or annual } & \\\text { basis. } & \\\hline \text { Relevant information and focus on the future. } & \\\hline \text { Primary users include investors, creditors, and } & \\\text { government authorities. } & \\\hline \text { There is no requirement to follow GAAP. } & \\\hline\end{array}$

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Definitions:

Sales Taxes Payable

Current liabilities on a company’s balance sheet, representing taxes collected from customers on behalf of governmental authorities which are yet to be remitted.

Credited

An accounting entry that increases a liability or equity account, or decreases an asset or expense account.

Future Payments

Obligations that are due to be paid at a future date.

Liabilities

Debts or obligations that arise during the course of business operations, which must eventually be paid off or settled.