Answer
Managerial accounting and financial accounting are both important aspects of a business, but they serve different purposes and are used by different groups of people.
Work Step by Step
Managerial Accounting: Managerial accounting, also known as management accounting, is a branch of accounting that provides financial and non-financial information to managers within an organization. This information is used to make informed decisions regarding the management and control of the organization's operations, such as setting budgets, controlling costs, and improving efficiency.
Financial Accounting: Financial accounting is the process of preparing financial statements and other reports for external stakeholders, such as investors, creditors, and regulators. The primary purpose of financial accounting is to provide information about a company's financial performance and position, including its income, expenses, assets, liabilities, and cash flows. Financial accounting must adhere to strict reporting standards and provide a high level of accuracy and transparency.
