Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 1 - The Manager and Management Accounting - Assignment Material - Questions - Page 21: 1-1

Answer

Financial accounting is concerned with the finances of a business. Financial accounting reports are prepared for corporate stakeholders, creditors, and regulatory authorities. Managerial accounting is concerned with the information that managers require in order to plan, control, and make decisions. In a word, financial accounting offers information needed by those outside the business, whereas managerial accounting gives information used within the organization.

Work Step by Step

Financial accounting consists of the mandatory reports per GAAP and IFRS. Managerial accounting is not mandatory.
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