1.Which of the following statements represents the difference between financial accounting and managerial accounting?

a.Managerial accounting information is reported as needed by management for its decision making, whereas financial accounting information is required to be reported annually.

b.Managerial accounting deals only with cash flows, expenses, and revenues, whereas financial accounting deals with assets, liabilities, cash flows, expenses, and revenues.

c.The reports generated using managerial accounting is for all the stakeholders of a company, whereas the reports generated using financial accounting is meant only for the internal stakeholders.

d.Managerial accounting information is audited annually, whereas financial accounting information is not audited annually.

2.Which of the following statements is true about the work-in-process inventory?

a.It consists of completed jobs that have not been sold.

b.It consists of completed jobs that have already been sold.

c.It consists of the costs of the direct and indirect materials that have not yet entered the manufacturing process.

d.It consists of direct materials costs, direct labor costs, and factory overhead costs that have entered the manufacturing process but are associated with products that have not been completed.