Podcast Beta
Questions and Answers
What is the purpose of financial accounting?
To provide accurate and reliable financial information about a company's performance and position to external parties.
Explain the difference between financial accounting and managerial accounting.
Financial accounting focuses on external reporting to stakeholders, while managerial accounting is more concerned with internal decision-making and planning.
How does the accrual basis of accounting differ from the cash basis?
Accrual accounting recognizes revenue and expenses when they are incurred, regardless of when cash is exchanged. Cash accounting only records transactions when cash is received or paid.
