Characteristics as to accounting

See attached file for clarity.

Management accounting differs from financial accounting in many ways. Indicate with an "X" in the appropriate column whether each of the following characteristics relates to financial accounting, management accounting, or neither.

Financial Accounting Management Accounting Neither
Primary Users:
Owners, stockholders, lenders, customers, governmental agencies
Managers, lenders
Managers, employees
Report Format and Frequency:
In conformance with GAAP whenever needed
Flexible, driven by user's needs
In conformance with GAAP on a periodic basis
Nature and Purpose of Reports:
Objective and verifiable; reports on past performance
Objective and verifiable for decision making; subjective for planning
Subjective and verifiable; reports on past performance
Units of Measure:
Dollars at historical, market, or projected values; physical measures of time or number of objects
Dollars at historical values only
Dollars at historical and market values


Solution Summary

Response helps in differntiating characteristics as to financial accounting, management accounting