Chris Martin has prepared the following list of statements about managerial accounting and financial accounting.

1. Financial accounting focuses on providing information to internal users.

2. Analyzing cost-volume-profit relationships is part of managerial accounting.

3. Preparation of budgets is part of financial accounting.

4. Managerial accounting applies only to merchandising and manufacturing companies.

5. Both managerial accounting and financial accounting deal with many of the same economic events.

6. Managerial accounting reports are prepared only quarterly and annually.

7. Financial accounting reports are general-purpose reports.

8. Managerial accounting reports pertain to subunits of the business.

9. Managerial accounting reports must comply with generally accepted accounting principles.

10. Although managerial accountants are expected to behave ethically, there is no code of ethical standards for managerial accountants.

Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.