What is the difference between financial and management accounting? ◄Click here

Via Scoop.itTeaching 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.
Show original

Advertisements

Posted on November 1, 2011, in Uncategorized. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: