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    Difference Between Financial Accounting and Management Accounting PDF

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    Yakkstar 21
    Financial accounting and management accounting differ in their focus and purpose. Financial accounting aggregates information for external parties like shareholders and lenders, focusing on historical reports. Its main objective is to disclose the financial position and results of a business. Management accounting generates internal information for managers and employees to assist with planning, setting objectives, and evaluating performance. It provides detailed current and future forecasts tailored to an organization's needs. While financial accounting prepares standardized reports, management accounting prepares informal customized reports.

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    Difference Between Financial Accounting and Management Accounting PDF

    Uploaded by

    Yakkstar 21
    77 views2 pages
    Financial accounting and management accounting differ in their focus and purpose. Financial accounting aggregates information for external parties like shareholders and lenders, focusing on historical reports. Its main objective is to disclose the financial position and results of a business. Management accounting generates internal information for managers and employees to assist with planning, setting objectives, and evaluating performance. It provides detailed current and future forecasts tailored to an organization's needs. While financial accounting prepares standardized reports, management accounting prepares informal customized reports.

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    Difference between Financial Accounting and Management Accounting.pdf

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    Financial accounting and management accounting differ in their focus and purpose. Financial accounting aggregates information for external parties like shareholders and lenders, focusing on historical reports. Its main objective is to disclose the financial position and results of a business. Management accounting generates internal information for managers and employees to assist with planning, setting objectives, and evaluating performance. It provides detailed current and future forecasts tailored to an organization's needs. While financial accounting prepares standardized reports, management accounting prepares informal customized reports.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    77 views2 pages

    Difference Between Financial Accounting and Management Accounting PDF

    Uploaded by

    Yakkstar 21
    Financial accounting and management accounting differ in their focus and purpose. Financial accounting aggregates information for external parties like shareholders and lenders, focusing on historical reports. Its main objective is to disclose the financial position and results of a business. Management accounting generates internal information for managers and employees to assist with planning, setting objectives, and evaluating performance. It provides detailed current and future forecasts tailored to an organization's needs. While financial accounting prepares standardized reports, management accounting prepares informal customized reports.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    Difference between Financial Accounting and

    Management Accounting [Notes with PDF]


    everythingaboutaccounting.info/2020/02/difference-between-financial-accounting-and-management-
    accounting.html

    February 20, 2020

    In this article, we will learn in-depth about the difference between financial accounting and
    management accounting, and much more.

    How Does Financial Accounting differ from Management


    Accounting?
    The differences between financial accounting and management accounting are
    common questions to understand since each requires a different career path.

    Financial accounting usually refers to the aggregation of financial accounting


    information whereas management accounting refers to the internal process used for
    accounts for business transactions.

    There are a number of differences between them. Which is as follows

    Financial Accounting vs. Management Accounting

    1/2
    SL Financial Accounting Management Accounting
    No

    1. It generates information that is used It generates information that managers


    by external parties such as and employees use within the
    shareholders and lenders. organization.

    2. Focuses on history: reports in the Management accounting focuses on the


    previous quarter or year. present and future forecasts.

    3. It provides detailed information on the It provides complete and detailed reports


    organization’s financial position. regarding various information.

    4. The main objective is to disclose the The main objective is to assist


    end results of the business, and the management by providing information
    financial condition of the business on that is used to plan, set objectives, and
    a specific date. evaluate those objectives.

    5. Publishes reports in a particular Prepares management accounts in an


    format in order to accurately compare informal format as well as on a company-
    different organizations. based basis as necessary.

    6. Prepares financial statements at the Prepares reports according to the


    end of the accounting period, which is organization’s needs and requirements.
    usually one year.

    That’s all. I hope you got it. If not, do tell me what else I should explain here and I will
    write a new article about that. Please do not forget to comment.

    You can also read:

    Accounting: Definition, objective, Evolution, Branches.


    Why do you choose your career as an accountant?
    Top 50 accounting interview questions and answers.
    Accounting quizzes.

    2/2

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