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difference between financial books, management books and tax book on the basis of authority

difference between financial books, management books and tax book on the basis of authority

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Answer #1

The differences is are as follows:-

Financial books is prepared for the purpose of disclosing income and other transactions to show the company performance to the various stakeholders it is a public document.it is prepared as per the requirement of GAAPS

Management books are prepared internally in the company for decisson making purpose like, pv ratio analysis, break even analysis,and other managerial decissons. it is prepared for helping management in taking crucial and difficult decissons. it is prepared according to the principles of management accountancy

Tax books are prepared for the purpose of calculating tax expense as  some transactions are added and subtracted from income declared by the company so a seprate tax book is prepared for it. it is prepared as per the legal requirements of federal goverment

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