(a)
To explain: The term managerial accounting is a field of accounting that provides economic information for all interested parties.
(a)
Answer to Problem 1Q
Explanation of Solution
In the field of accounting, the managerial accounting provides both economic and financial information for managers and other internal users. Thereby, it does not provide economic information for all interested parties.
Thus, the term managerial accounting is a field of accounting that provides economic information for all interested parties is disagreed.
(b)
Managerial accounting: Managerial accounting is the process of interpreting the financial information, and communicating it to the internal users, and managers in order to help them in the decision making process to achieve the goals of the organization.
To explain: The belief of J that the managerial accounting serves only manufacturing firms of J, is correct.
(b)
Answer to Problem 1Q
Explanation of Solution
This is because managerial accounting applies to all types of businesses such as service, merchandising and manufacturing. Thereby, it cannot serve only the manufacturing firms. Hence, J’s belief is incorrect.
Hence, the belief of J that the managerial accounting serves only manufacturing firms of J is incorrect.
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Chapter 1 Solutions
Managerial Accounting: Tools for Business Decision Making
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