Your Submission: Started on Jun 15 at 14:19 1 Why is it important that FINANCIAL accounting provide a common set of standards that are used by all companies in preparing their financial statements? So that income taxes can be collected in a fair and equitable fashion To provide standardized data used in computing government statistics So that outsiders can compare financial reports coming from many different companies To serve the competitive needs of companies working to uniquely serve specific customers in specific markets 2 Why don't all companies use the same MANAGERIAL accounting systems? The systems are required to provide government data once per year, and the operating cycles of companies are often based on different seasons. The systems must serve the competitive needs of companies working to uniquely serve specific customers in specific markets. The systems must provide different sets of financial statements; some companies don't provide outsiders with both an income statement and a balance sheet. The systems are based on publicly available data which are posted in different databases for companies in different industries