What are the differences between financial and managerial accounting? - 68225

Solution Posted by
Solution Detail
Price: $4.00
  • From: Business,
  • Posted on: Wed 02 Jul, 2014
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

What are the differences between financial and managerial accounting? 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?

Solution Description

Financial Accounting

 

Financial accounting works mostly for external users. They may be investors, creditors, auditors or analysts. This type of business accounting is supposed to correspond to specific principles and guidelines – Generally Accepted Accounting Principles (GAAP). These principles outline the major rules according to which the company’s accounting processes should be conducted and managed. Besides, they define the standards and terms for issuing reports on the company’s financial information.

 

The information provided by financial accounting has a general informative purpose. It does not contain many estimates, is used mostly for investment and credit deci

Attachments
S_011.doc
S_011.doc