Complete the following comparison table between managerial and financial accounting.

Complete the following comparison table between managerial and financial accounting.

		Financial Accounting		Managerial Accounting
Primary users of reports		No Independent Audits Relevance to Decisions Internal Users As Frequently as Needed Financial Statements Special-Purpose Information for Specific Decisions Generally Accepted Accounting Principles Internal Reports Annual Audit by Certified Public Accountant External Users General-Purpose Quarterly and Annually		Quarterly and Annually No Independent Audits External Users Financial Statements Annual Audit by Certified Public Accountant As Frequently as Needed Generally Accepted Accounting Principles General-Purpose Internal Users Internal Reports Special-Purpose Information for Specific Decisions Relevance to Decisions
Types of reports		Quarterly and Annually Generally Accepted Accounting Principles General-Purpose Annual Audit by Certified Public Accountant Internal Users Relevance to Decisions External Users Internal Reports As Frequently as Needed Financial Statements Special-Purpose Information for Specific Decisions No Independent Audits		Internal Users General-Purpose Generally Accepted Accounting Principles Annual Audit by Certified Public Accountant Quarterly and Annually External Users As Frequently as Needed Financial Statements Internal Reports Special-Purpose Information for Specific Decisions Relevance to Decisions No Independent Audits
Frequency of reports		Internal Users External Users Internal Reports Annual Audit by Certified Public Accountant Generally Accepted Accounting Principles No Independent Audits As Frequently as Needed Financial Statements Quarterly and Annually General-Purpose Special-Purpose Information for Specific Decisions Relevance to Decisions		External Users Internal Reports Special-Purpose Information for Specific Decisions Annual Audit by Certified Public Accountant General-Purpose Internal Users Relevance to Decisions As Frequently as Needed No Independent Audits Financial Statements Quarterly and Annually Generally Accepted Accounting Principles
Purpose of reports		Annual Audit by Certified Public Accountant General-Purpose Relevance to Decisions Financial Statements As Frequently as Needed No Independent Audits Special-Purpose Information for Specific Decisions Internal Users Internal Reports External Users Quarterly and Annually Generally Accepted Accounting Principles		Internal Reports External Users Special-Purpose Information for Specific Decisions As Frequently as Needed Annual Audit by Certified Public Accountant Internal Users Financial Statements Quarterly and Annually General-Purpose No Independent Audits Generally Accepted Accounting Principles Relevance to Decisions
Content of reports		Generally Accepted Accounting Principles Quarterly and Annually External Users Relevance to Decisions Annual Audit by Certified Public Accountant Internal Users General-Purpose Internal Reports No Independent Audits As Frequently as Needed Financial Statements Special-Purpose Information for Specific Decisions		Generally Accepted Accounting Principles General-Purpose Quarterly and Annually External Users Annual Audit by Certified Public Accountant Internal Users No Independent Audits Financial Statements Internal Reports Relevance to Decisions As Frequently as Needed Special-Purpose Information for Specific Decisions
Verification process		Financial Statements Generally Accepted Accounting Principles External Users Annual Audit by Certified Public Accountant Relevance to Decisions As Frequently as Needed No Independent Audits Quarterly and Annually General-Purpose Internal Reports Special-Purpose Information for Specific Decisions Internal Users		No Independent Audits External Users Financial Statements General-Purpose Quarterly and Annually Generally Accepted Accounting Principles Relevance to Decisions Internal Reports Annual Audit by Certified Public Accountant Internal Users As Frequently as Needed Special-Purpose Information for Specific Decisions

Indicate whether the following statements are true or false.

1.		Managerial accounting reports focus on manufacturing and nonmanufacturing costs, but are also used in the budget process.		False True
2.		Financial accounting reports pertain to subunits of the business and are very detailed.		False True
3.		Managerial accounting reports must follow GAAP and are audited by CPAs.		False True
4.		Managers’ activities and responsibilities can be classified into three broad functions: planning, directing, and controlling.		False True