What are the key differences between financial and managerial accounting? How do these differences impact the type of information that must be gathered and reported? What are the different types of decisions that users of financial accounting information must make? What are the different types decisions that users of managerial accounting information must make?
What are the key differences between financial and managerial accounting?
The key difference relates to the use of information provided by financial and managerial accounting. The information provided by financial accounting is geared towards external parties while the managerial accounting information is for internal decision making. This difference results in difference in how the information is gathered and presented. Financial accounting should present reports in standard formats using generally accepted accounting principles while managerial accounting would present reports as per the requirements of the user without being constrained by the ...
The solution details the differences between financial and managerial accounting