Accounting and the Business Environment
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Accounting › Accounting and the Business Environment
__________ accounting provides information for __________ decision makers (e.g. outside investors and lenders); however, __________ accounting focuses on information for __________ decision makers (e.g. supervisors).
Financial. . . external. . . managerial. . . internal
Managerial. . . external. . . financial. . . internal
Managerial. . . internal. . . financial. . . external
Financial. . . internal. . . managerial. . . external
Explanation
"Financial. . . external. . . managerial. . . internal" is the correct choice. Accounting can be required into two fields: financial and managerial. Financial accounting provides data for outsiders, while managerial accounting provides data for insiders.
If the Alpha Corporation's 2015 alternative minimum taxable income was 
Explanation
This problem asks us to determine the exempt portion of the Alpha Corporation's alternative minimum taxable income (AMTI). A corporation is allowed an exemption of up to 
Substitute and solve.
__________ accounting provides information for __________ decision makers (e.g. outside investors and lenders); however, __________ accounting focuses on information for __________ decision makers (e.g. supervisors).
Financial. . . external. . . managerial. . . internal
Managerial. . . external. . . financial. . . internal
Managerial. . . internal. . . financial. . . external
Financial. . . internal. . . managerial. . . external
Explanation
"Financial. . . external. . . managerial. . . internal" is the correct choice. Accounting can be required into two fields: financial and managerial. Financial accounting provides data for outsiders, while managerial accounting provides data for insiders.
Which of the following is not an accurate difference between the International Financial Reporting Standards (IFRS) and the Generally Accepted Accounting Principles (US GAAP)?
The US GAAP uses a principles based approach while the IFRS employs a rules based approach.
The US GAAP uses a two-step impairment approach while the IFRS uses a one-step approach.
The US GAAP has no requirement regarding comparative information while the IFRS does.
The IFRS permits the reevaluation of intangible assets other than goodwill while the US GAAP does not.
Explanation
"The US GAAP uses a principles based approach while the IFRS employs a rules based approach" is the correct answer. This is not an accurate difference between the IFRS and the USGAAP. The US GAAP typically employs a rules based approach while the IFRS follows a principles based approach. The other choices represent accurate differences between the IFRS and US GAAP according to the International Accounting Standards Committee.