What is the difference between financial and management accounting? ◄Click here
Via Scoop.it – Teaching Economics
Financial accounting prepares a limited number of prescribed financial reports in accordance with statutory standards and the needs of external stakeholders. Financial accounting summarizes the consequences of past decisions on the performance of the business as a whole. Management accounting prepares an unlimited number of financial reports in accordance with business requirements and the needs of management. Management accounting analyses the performance of units within the business by comparing results with preset budgets and so assists management in their future planning and control functions.