Question

Explain four distinctions between management accounting and financial accounting.

Answer 1

Management accounting	financial Accounting
1) Management accounting is not compulsory	1) Financial accounting is compulsory.
2) Management accounting includes monetary and non monetary information.	2) Financial accounting inculdes only monetary information.
3) Objective of management accounting is to assisst management in planning and decision making process by providing detailed information on various matters.	3)Objective of financial accounting is to provide financial information to outsiders.
4) user of management accounting is only internal management.	4) User in this case includes external and internal parties.