LP4.1 Written Assignment: Financial Report InformationThis assignment will assess the competency 3....

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LP4.1 Written Assignment: Financial Report Information This assignment will assess the competency 3. Analyze the basics of accounting and financial statement interpretation. Directions: In a minimum...

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LP4.1 Written Assignment: Financial Report Information

This assignment will assess the competency 3. Analyze the basics of accounting and financial statement interpretation.

Directions: In a minimum of 2-3 full pages answer the questions provided below.
• Please answer the questions in a double-spaced word document.
• Remember to cite references.

1. Define the difference between financial and managerial accounting.
2. Describe the components of a balance sheet.
3. Describe how financial report information can be used by a manager.
4. Outline the major sources of revenue and expenses of a medical group.

Answered Same Day Dec 25, 2021

Robert · Accepted Answer

1
LP4.1 Written Assignment: Financial Report Information 
There are certain differences between financial and managerial accounting. Financial 
accounting may be defined as the “process of recording, summarizing and reporting the myriad 
of transactions resulting from business operations over a period of time” (Investopedia, 2017). 
Managerial accounting, on the other hand, should be defined as a process that “involves 
preparing and providing timely financial and statistical information to business managers so that 
they can make day-to-day and short-term managerial decisions” (Debitoor Dictionary, 2017). 
Primarily, if financial accounting put emphasis on the financial statements then managerial 
accounting is more focused on providing vital information to the management so that the latter 
can operate the company in a more efficient manner (Averkamp, 2017). Financial accounting 
focuses on the financial statements which “are distributed to stockholders, lenders, financial 
analysts, and others outside of the company” (Averkamp, 2017). Managerial accounting has to 
play a vital role in providing information on how to compute the cost of products at a 
manufacturing unit (Averkamp, 2017). Financial accounting is constituted of generally accepted 
accounting principles that are needed to be followed in terms of complying with the laws of the 
land in which a company is operating, and financial accounting is infused with practices like 
reporting the results of a company’s business transactions on its balance sheet, and it is also a 
discipline which is meant for preparing income statement, statement of cash flows,

LP4.1 Written Assignment: Financial Report Information This assignment will assess the competency 3. Analyze the basics of accounting and financial statement interpretation. Directions: In a minimum...

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