Question

Exercise 14-1 Sources of accounting information LO C1 

Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following table the primary source of information for each business decision. Primary Information Source Business Decision.

	Business Decision	Primary Information Source
1.	Prepare budgets for the next year
2.	Estimate profits from a new service opportunity
3.	Prepare GAAP-based financial statements for external auditor
4.	Estimate product cost for a new line of shoes
5.	Determine whether to automate a production process
6.	Prepare financial reports according to GAAP
7.	Report financial performance to board of directors
8.	Report financial performance to investors

Answer 1