A Habile Company has made March, the one dada All Overvace Southwest with a coletulantering March S. Sadri ge 3. On March, and we donde martial hom - 3. On March 15, the winnende ved the theme for 1 O 3. Ndio med hende at den fem Ow Much the hig S e Maspalte este Schwach 1. On March 30, www Ricet of machine Sering Me h: d mas, Hang dy Full MV - of the and he Bewaren Alle vervant of Stock Neste permanecenter 1,300 New Shehe on the info December 2010 cum Meste pol tomber 200 12:30:00 I denne side December 2010 August December 2, 200 oteller 51.90 Date December The SICU Docomo SITTU her 33 56290-1100 Theme SIRU December - ROU SUS S1730- No on the www. el for the Calculate the heat the NA ame (18 Marks A. James Henderson is the president of York Athletics, a producer of hats and jerseys and other accessories for fans of several professional sports teams. Imagine you are the accountant in charge of all accounting functions at Sportswear. She reviewed the most recent financial statements, and noticed that the company did not do as well as they had planned. She wanted to look more closely at the profitability of each of our products to determine exactly what happened, but realized that she did not have this information in the financial statements. According to the accountant, financial statements are prepared according to the Generally Accepted Accounting Principles (GAAP) and do not require their company to disclose profitability by product, and therefore did not prefer not to make this information public. Accordingly, product profitability information stays in-house and is prepared by the company's managerial accountant. It is common among companies like York Athletics to prefer not to disclose more information than is required by the GAAP, but they would like to have more detailed information for internal decision-making and performance-evaluation purposes. This is why it is important to distinguish between financial and managerial accounting. Required: 1. What is the difference between information prepared by financial accountants and information prepared by managerial accountants? (3 Marks) 2. It is clear that financial accounting focuses on reporting to outside users while managerial accounting focuses on reporting to inside users. What specific characteristics would we expect to see in managerial accounting information? (6 Marks) B. Suppose you are the co-owner and manager of a retail store that sells and repairs racing bicycles. 1. Provide one example of a financial accounting report that would be useful to you and your co-owner. Provide two examples of managerial accounting reports that would be useful to you as the manager. (3 Marks) 2. Provide two examples of nonfinancial measures used by a pizza parlor that serves food in the restaurant and offers delivery services. (2 Marks) 3. For each report listed in the following, indicate whether it relates to financial or managerial accounting. Clearly explain the reasoning behind your answer for each item (6 Marks) a. Defective goods produced as a percentage of all goods produced b. Income statement for the most current year, prepared in accordance with GAAP c. Production department budget for the next quarter d. Balance sheet at the end of the current year, prepared in accordance with GAAP A Habile Company has made March, the one dada All Overvace Southwest with a coletulantering March S. Sadri ge 3. On March, and we donde martial hom - 3. On March 15, the winnende ved the theme for 1 O 3. Ndio med hende at den fem Ow Much the hig S e Maspalte este Schwach 1. On March 30, www Ricet of machine Sering Me h: d mas, Hang dy Full MV - of the and he Bewaren Alle vervant of Stock Neste permanecenter 1,300 New Shehe on the info December 2010 cum Meste pol tomber 200 12:30:00 I denne side December 2010 August December 2, 200 oteller 51.90 Date December The SICU Docomo SITTU her 33 56290-1100 Theme SIRU December - ROU SUS S1730- No on the www. el for the Calculate the heat the NA ame (18 Marks A. James Henderson is the president of York Athletics, a producer of hats and jerseys and other accessories for fans of several professional sports teams. Imagine you are the accountant in charge of all accounting functions at Sportswear. She reviewed the most recent financial statements, and noticed that the company did not do as well as they had planned. She wanted to look more closely at the profitability of each of our products to determine exactly what happened, but realized that she did not have this information in the financial statements. According to the accountant, financial statements are prepared according to the Generally Accepted Accounting Principles (GAAP) and do not require their company to disclose profitability by product, and therefore did not prefer not to make this information public. Accordingly, product profitability information stays in-house and is prepared by the company's managerial accountant. It is common among companies like York Athletics to prefer not to disclose more information than is required by the GAAP, but they would like to have more detailed information for internal decision-making and performance-evaluation purposes. This is why it is important to distinguish between financial and managerial accounting. Required: 1. What is the difference between information prepared by financial accountants and information prepared by managerial accountants? (3 Marks) 2. It is clear that financial accounting focuses on reporting to outside users while managerial accounting focuses on reporting to inside users. What specific characteristics would we expect to see in managerial accounting information? (6 Marks) B. Suppose you are the co-owner and manager of a retail store that sells and repairs racing bicycles. 1. Provide one example of a financial accounting report that would be useful to you and your co-owner. Provide two examples of managerial accounting reports that would be useful to you as the manager. (3 Marks) 2. Provide two examples of nonfinancial measures used by a pizza parlor that serves food in the restaurant and offers delivery services. (2 Marks) 3. For each report listed in the following, indicate whether it relates to financial or managerial accounting. Clearly explain the reasoning behind your answer for each item (6 Marks) a. Defective goods produced as a percentage of all goods produced b. Income statement for the most current year, prepared in accordance with GAAP c. Production department budget for the next quarter d. Balance sheet at the end of the current year, prepared in accordance with GAAP