Which type of accounting primarily establishes intermediary rules and guidelines for recording and reporting commercial real estate transactions?

• A. Managerial accounting
• B. Financial accounting
• C. Tax accounting
• D. Regulatory accounting

Answer: (D)

Verified step by step guidance

1. Understand the different types of accounting mentioned in the problem: Managerial accounting, Financial accounting, Tax accounting, and Regulatory accounting.
2. Managerial accounting focuses on providing internal reports and data to help management make decisions. It is not primarily concerned with external reporting or intermediary rules.
3. Financial accounting deals with preparing financial statements for external stakeholders, following established standards like GAAP or IFRS. However, it does not specifically focus on intermediary rules for commercial real estate transactions.
4. Tax accounting is concerned with compliance with tax laws and regulations, focusing on preparing tax returns and planning. It does not establish intermediary rules for recording and reporting transactions.
5. Regulatory accounting is the type of accounting that establishes intermediary rules and guidelines for specific industries, including commercial real estate transactions, ensuring compliance with industry-specific regulations.