"Financial accounting" and "managerial accounting" roles and differences.© BrainMass Inc. brainmass.com October 2, 2020, 12:54 am ad1c9bdddf
For the purpose of this posting we will be considering the topic of "financial accounting" and "managerial accounting" and their roles and differences. In short, the purpose of financial accounting is external and managerial accounting is internal. Financial accounting is designed to provide the public, banks, and investors the information they need to analyze the performance and outlook of a company. Managerial accounting is designed to give internal management the information about the company in order to allow the manager the opportunity to find and change certain aspects of the organization to maximize profitability and overall well-being of the company.
The role of financial accounting within an organization has a primary role of providing detailed financial information to the outside community to show the company's current state of being. This information is used by investors, banks, and the ...
The financial accounting and managerial accounting roles are examined. The differences are determined.