Learning Objective 01-C1: Explain the roles and ethics of managerial accounting.

 Learning Objective 01-C1: Explain the roles and ethics of managerial accounting.


The purpose of managerial accounting is to provide useful information to management and other internal decision makers. It does this by collecting, managing, and reporting both monetary and nonmonetary information in a manner useful to internal users. Major characteristics of managerial accounting include (1) focus on internal decision makers, (2) emphasis on planning and control, (3) flexibility, (4) timeliness, (5) reliance on forecasts and estimates, (6) focus on segments and projects, and (7) reporting both monetary and nonmonetary information. Ethics are beliefs that distinguish right from wrong. Ethics can be important in reducing fraud in business operations.

 Knowledge Check 01
 
_____ is when a person commits fraud and feels a low risk of getting caught.
 
multiple choice

    Pressure
    Opportunity Correct
    Rationalization
    Incentive

Answer

 Opportunity

Thanks