Question

difference between financial and managerial accounting. Are there any regulations/rules that need to be followed under either method. If so what are they? Be sure to cite any sources you use in your post.450 words please

Answer 1

DIFFERENCE BETWEEN FINANCIAL AND MANAGERIAL ACCOUNTING:

FINANCIAL ACCOUNTING MANAGERIAL ACCOUNTING

refers to aggregation of all the accounting information refers to internal processes used to account business

to make the final financial statements. transactions of day to day routine of business.

it shows the profit or loss that company is facing. it shows the problems in the company and how to fix.

has to comply with STANDARDS OF ACCOUNTING. NO SUCH COMPLIANCE IS REQUIRED.

VALUATION of assets and liabilities is done. no such valuation is done

Under financial accounting, quantitative records are maintained. under managerial accounting, qualitative records are

maintained.

under financial accounting the financial results are worked upon under managerial accounting, manager's efficiency is j

for better financial results. judged upon.

REGULATIONS ARE TO BE FOLLOWED UNDER FINANCIAL ACCOUNTING ONLY NOT BY MANAGERIAL ACCOUNTING.

THE REGULATIONS THAT ARE TO BE FOLLOWED UNDER FINANCIAL ACCOUNTING ARE:

GENERALLY ACCEPTED AND ACCOUNTING PRINCIPLES:THESE ARE THE PRINCIPLES THAT ARE TO BE FOLLOWED DURING FINANCIAL ACCOUNTING.

1) going concern principle- this means that the organisation will continue forever and would not come to an end in near future.

2) matching principle- this means that for every debit entry there is a credit entry i.e. double entry has been passed for every transaction.

3) full disclosure- this says that all the important and required information related to financial matters have been reported fully. there is no discrepancy in the same, as it tell you about the financial position of the organisation.

4) monetary unit assumption- all the values are expressed in the u.s. dollars. ($) there is no place for qualitative aspect .