James, an accountant at Forta Company, is preparing an income statement at the end of the year. It will be included in the company's annual report to be released to the public. This is an example of the managerial accounting function at Forta.

Managerial Accounting

The practice of analyzing, interpreting, and communicating financial information to managers for the purpose of making informed business decisions.

Income Statement

A summary of the revenue and expenses for a specific period of time, such as a month or a year.