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Purpose of Financial Accounting

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Information contained in this file answers such questions as:
What types of decisions can be made using financial accounting information?
What types of decisions can be made using managerial accounting?
Why does financial accounting have to comply with GAAP but managerial doesn't?

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Why does financial accounting have to comply with GAAP but managerial doesn't?
What types of decisions can be made using financial accounting information? What types of decisions can be made using managerial accounting?

The purpose of accounting is to provide the necessary information that is needed to make sound economic decisions.

Financial Accounting

The main purpose of financial accounting, a subset of the science of accounting, is to prepare necessary financial reports about a firm's financial performance for interested outside parties such as investors, lenders, creditors, analysts, tax, and other governmental regulatory agencies.

In order that companies report their financial performance fairly and consistently, they must ...

Solution Summary

Information contained in this file answers such questions as:
What types of decisions can be made using financial accounting information?
What types of decisions can be made using managerial accounting?
Why does financial accounting have to comply with GAAP but managerial doesn't?

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