COMMERCE 2AB3 Lecture Notes - Fall 2018 Lecture 1 - Financial accounting, Management accounting, Forward (association football)
20 Sep 2018
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Week 1 tutorial - september 12, 2018 chatthar@mcmaster. ca: financial accounting must comply with gaap (ifrs). False: managerial accounting provides financial accounting with the necessary information for income determination and inventory valuation, true b. False: the truthfulness (accuracy) of accounting information for internal users is more important than timeliness, true b. False for internal users you want the info to be timely, for inventory demand: accounting information is considered relevant when it has the attributes of verifiability, neutrality, and predictive power, true b. False - relevant and reliability (know the differences!: managers use management accounting information to develop and implement plans, true b. False: managerial accounting provides stakeholders with useful financial and non-financial information, true b. False managerial = internal, financial = for stakeholders: financial accounting is broader in scope than management accounting, true b. False: the assignment of indirect costs to cost objects is called cost allocation.
