Correction No. 2 3 4 5 67 8 00 9 10 Managerial Accounting Assignicht Question 1: Determine whether each of the following statement is true or false, and correct the false statement(s): STATEMENT Management accounting focuses on reporting financial information to external parties (outsiders) such as investors, government agencies, banks, and suppliers based on Generally Accepted Accounting Principles (GAAP) or International Financial Reporting Standards (IFRS). Financial accounting measures, analyzes, and reports financial and nonfinancial information to helps managers make decisions. Management accounting in producing information does not have to follow standards or principles instead it uses many tools and techniques. The final output of managerial accounting is the financial statements (balance sheet, income statement, cash flow statement and changes in equity statements). Managerial accounting uses past data while Financial accounting uses past and future data Managerial accounting provides information about the financial position, the income and cash flow to outsiders Financial accounting serves management in different levels Financial accounting is restricted (governed or constrained) by accounting standards (IRFS or GAAP) Cost is the cash or cash-equivalent value sacrificed for goods and services that is expected to bring a current or future benefit to the organization. Manufacturing cost is called period cost, while marketing and administrative costs are called product cost Operating costs is the running costs of the operations that are required to generate income T/F