1) Managerial accounting: 2 Points Provides information to internal users inside the company Uses information that must be in compliance with GAAP O Provides information to external users like shareholders and creditors 2) Financial accounting 2 Points Is reported at fixed intervals O Provides information to external users like shareholders and creditors Must be in accordance with GAAP O All of the above 3) An investor researching profitable companies pulls quarterly reports of various corporations. The reports are prepared according to GAAP with objective information and focus on the business as a whole. Are the reports prepared using managerial or financial accounting? 2 Points O Financial Managerial 4) A company is looking to increase its gross profit by reducing costs for the upcoming periods. To further investigate, the production manager pulls reports that detail costs in the previous year. After discussions with the purchasing manager, he creates a budget based on assumptions and estimates, Is the manager using financial or managerial accounting? 2 Points Financial O Managerial