Answer 3 required and 3 of the optional questions from the uploaded Research Paper

Answer 3 required and 3 of the optional questions from the uploaded information - Research Paper Example These financial statements are to be prepared using a predefined set of standards and guidelines, widely known as the Generally Accepted Accounting Principles (GAAP) (Types of Accounting, 2013). Managerial accounting is an accounting process that reportedly produces information for the sole us of management of the organization. The form and the details to be included in the reportorial information would depend on the intricate and extensive requirements and purpose of management. It was actually disclosed that the information could be more detailed, as compared to financial accounting statements which were identified to be prepared exclusively for external uses. Thus, management could require budgets, forecasts, and financial highlights that would be used to make decisions regarding strategies and plans that would achieve identified goals. Cost accounting was noted to be a branch of managerial that focuses on monitoring and controlling costs. Tax accounting, on the other hand, as the term implies, focuses on accounting facets which are tax-related and are reportedly governed by tax rules and regulations, as well as observance to the GAAP. Governmental accounting, or also known as public accounting (or even fund accounting) was noted to be a type of accounting process and information system that is used by government agencies or public organizations. The main disparity of this type of accounting with private organizations’ accounting system is that their funds are governed by budgets set by the federal government. Likewise, the disbursement of funds are to be allocated subject to the aims or goals of the government agency. Internal auditing accounting focuses on an ongoing appraisal of the financial condition of the organization subject to conformity to accounting standards and accounting laws. Finally, international accounting is the type of accounting process or information system governed by international accounting standards, as contrasted with GAAP. 2. Describe the purposes of financial statements and corporate annual reports. The purposes of financial statements and corporate annual reports include the provision of accurate financial information to various users to serve various needs (Purpose of Financial Statements, 2013). For instance, financials statements are mandated to be published to the public to give them a general overview of the organization and provide information regarding the potential effects of the organization to the local community or to the economy, as a whole. Likewise, financial statements and annual reports are needed by management for decision-making purposes. The companies’ shareholders, on the other hand, use these financial information to determine returns on their investments and any potential risks from currently disclosed external or internal factors that impinge on the organizations’ operations. Concurrently, the investors of the organization need to be given accurate information on the financial condition and status through financial statements and corporate annual reports that contain profits, returns on investment, risks, and market value, as needed. In addition to these various users, financial statements are needed by other financial institutions, such as banks or lending institutions when organizations apply for loans or financial assistance in various endeavors. Suppliers also need the information disclosed in financial stateme