Question

Discuss the differences between financial and managerial accounting. What types of financial statements are used by business organizations?

Answer 1

1)Financial reporting reports results of total business as single entity while in managerial accounting we do it business unit ,product and country wise

2)Financial accounting is as per the GAAP or IFRS standard but there is no particular standard to follow for managerial accounting

3)Financial accounting focus on actuals of the company while managerial on the future forecasts

4)financial accounting is done quarterly/annually while for managerial it is as per our requirement

5)The audience for financial accounting is external stakeholders while managerial it is internal

The financial statements used are Balance sheet, Income statements, cash flow statements