Financial Accounting And Management Accounting Essay

Answer 1 Financial Accounting Financial accounting is used to present the financial health of an organization to its external stakeholders. Board of directors, stockholders, financial institutions and other investors are the audience for financial accounting reports. Financial accounting presents a specific period of time in the past and enables the audience to see how the company has performed. Financial accounting reports must be filed on an annual basis, and for publically traded companies, the annual report must be made part of the public record. Management Accounting Management or managerial accounting is by managers to make decisions concerning the day-to-day operations of a business. It is based not on past performance, but on current and future trends, which does not allow for exact numbers. Because managers often have to make operation decisions in a short period of time in a fluctuating environment, management accounting relies heavily on forecasting of markets and trends. Differences’ Management accounting is presented internally, whereas financial accounting is meant for external stakeholders. Although financial management is of great importance to current and potential investors, management accounting is necessary for managers to make current and future financial decisions. Financial accounting is precise and must adhere to Generally Accepted Accounting Principles (GAAP), but management accounting is often more of a guess or estimate, since most managers doShow MoreRelatedAccounting : Financial And Management Accounting1025 Words   |  5 PagesAccounting is one of the three careers that is being discussed that a business majors are able to embrace in. Accounting is where employees are keeping up with the company’s records. Accountants take actions on keeping up with the company payroll cost, expenditures, and the sales revenues. They are to also keep track of the company’s losses and profits (Hill â€Å"Accounting† 1-5). 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SEMINAR TUTOR †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... Introduction Accounting is concerned with providing both financial and non-financial information that will help decision makers to make good decisions. An understanding of accounting therefore requires an understanding of the decision making process and an awareness of the users of accounting information. The major purposes of accounting are to formulate overall strategies and long-run plans. Resource allocation decisions suchRead MoreAccounting Systems And The Financial Management974 Words   |  4 Pages1. Companies create and maintain accounting systems because the accounting systems is an important role in the financial management. They bring a lot of benefits in the business management for accessing the financial statements, reporting business transactions, accounting pay and fee, and minimizing the problems with tax authorities. 2. Assets, liabilities, and stockholders’ equity, which are reported by companies at a specific date in the balance sheet. According to Kimmel, they also are relatedRead MoreAccounting Systems And The Financial Management1062 Words   |  5 Pagesand maintain accounting systems because the accounting systems is an important role in the financial management. They bring a lot of benefits in the business management for accessing the financial statements, reporting business transactions, accounting pay and fee, and minimizing the problems with tax authorities. 2. In the Balance Sheet, the assets, liabilities, and stockholders’ equity which are reported by companies at a specific date. They also are related in the basic accounting equation whichRead MoreAccounting Systems And The Financial Management Essay985 Words   |  4 Pagesmaintain accounting systems because the accounting systems is an important role in the financial management. 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