Question

Students should define the areas of financial and managerial accounting as well as identify the differences between the two areas of accounting. The paper should address the following differences between the two areas of accounting:

• Who are the users in each area of accounting?
• What accounting guidelines are used?
• Describe relevance and precision for the areas.
• What is the emphasis of each accounting area and why (i.e. historical data, future)?

Papers should be well written, clear, concise, and include at least two outside sources (from 2014 and beyond) that identify, describe, and support the discussion questions.

The paper will be evaluated on the following:

• Introduction and description of the two accounting areas. The opening paragraphs for each accounting area must be easily understood, concise, and clearly written.

All sources must have proper APA citation style. Provide references.

Answer 1

Managerial accounting is focused on dealing with operational and financial data and it is aimed at meeting with certain specific management needs.

Where as financial management is focused on financial data and it is aimed at preparing report for the entire organisation.

The uses of managerial accounting would be managers of different departments in order to create strategic plans.

Financial accounting would be used by financial managers in order to prepare the annual reports of the company and it is also used by the various outside stakeholders of the company like share holders and creditors as well as other public.

Financial accounting is followed after GAAP proceedure and managerial accounting does not have any such prosedure because it is mostly following up with internal management.

Managerial accounting needs a low degree of precision because it is related to the internal management of company where financial accounting relates to outside reporting which are public documents for the company and it needed a high level of precision.