Multiple Choice
Part A of a homeowner insurance policy will cover damages to which of the following assets?
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1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Financial information needed to manage a company is provided by a(n) ______ system.
A
financial accounting
B
auditing
C
tax accounting
D
managerial accounting
Verified step by step guidance1
Understand the context of the question: The problem is asking about the type of system that provides financial information needed to manage a company.
Review the definitions of the options provided: Financial accounting focuses on external reporting, auditing ensures compliance and accuracy, tax accounting deals with tax-related matters, and managerial accounting provides internal financial information for decision-making.
Identify the key purpose of managerial accounting: Managerial accounting is specifically designed to help managers make informed decisions by providing relevant financial data, such as budgets, forecasts, and performance reports.
Compare the options: Managerial accounting is the most relevant system for managing a company because it focuses on internal decision-making, unlike financial accounting, auditing, or tax accounting, which serve other purposes.
Conclude that the correct answer is managerial accounting, as it aligns with the need for financial information to manage a company effectively.
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