List 3 differences between financial and managerial accounting.

Question

Question

Answer 1

Answer #1

Answer:

Financial Accounting	Managerial Accounting
1. It is required by law	1. It is not required by law.
2. Prepared mainly to provide information to the users outside the entity.	2. It is prepared for internal use in the organisation and is not published to outside world.
3. As required by law, needs to be audited by an external party (Ex: Financials of listed entity needs to be audited by an Independent CPA)	3. There is no legal requirement for audit by an external party.

Answer 2

Similar Homework Help Questions

Please list at least 5 major differences between Managerial and Financial Accounting. Include in your discussion...

Please list at least 5 major differences between Managerial and Financial Accounting. Include in your discussion who the important players are in each, who is using the information, and what type of information is everyone focused on. Please explain why each type of accounting (managerial and financial) plays an important role in the organization.
What are the major differences between managerial and financial accounting?

What are the major differences between managerial and financial accounting?
What are the differences between the financial and managerial accounting? Discuss. Financial accounting is a language...

What are the differences between the financial and managerial accounting? Discuss. Financial accounting is a language used for communicating financial information that helps users make better economic decision. Discuss. What is meant by the accrual basis of accounting? Discuss. What are the differences between sole proprietorship, partnership, and corporations? Financial accounting information should have some characteristics in order to enhance the decision making. Discuss. Discuss how the choice of depreciation method can be used as a tool to increase reported...

All the following are differences between financial and managerial accounting in how accounting information is used...

All the following are differences between financial and managerial accounting in how accounting information is used except to a. plan and control company's operations. b. decide whether to invest in the company. c. evaluate borrowing capacity to determine the extent of a loan to grant. d. All the answer choices are correct.
What are the main differences in the role of financial accounting and managerial accounting?

What are the main differences in the role of financial accounting and managerial accounting?
Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility....

Assignment Questions: 1. One of the differences between Managerial Accounting and Financial Accounting is reporting flexibility. Financial reporting is restricted by Generally Accepted Accounting Principles whereas reporting in Managerial Accounting has fewer rules. a) Why is it permissible to violate Generally Accepted Accounting Principles when preparing reports used strictly by company management? b) Should external users always have the same information as internal users? Explain. 2. The United States uses accounting standards developed by the Financial Accounting Standards Board (FASB)...

Discussion Questions 1. What are the major differences between managerial accounting and financial accounting? 2. a....

Discussion Questions 1. What are the major differences between managerial accounting and financial accounting? 2. a. Differentiate between a department with line responsibility and a department with staff re- sponsibility. b. In an organization that has a Sales Department and a Personnel Department, among others, which of the two departments has (1) line re- sponsibility and (2) staff responsibility? 3. What manufacturing cost term is used to describe the cost of materials that are an integral part of the manufactured...
Which of the following is a difference between managerial and financial accounting? A. Managerial accounting reports...

Which of the following is a difference between managerial and financial accounting? A. Managerial accounting reports non-monetary information whereas financial accounting reports both monetary and non-monetary information. B. Managerial accounting prepares reports monthly whereas financial accounting prepares reports annually. C. Managerial information is confidential whereas financial accounting information is publicly available. D. Managerial accounting is used by government authorities whereas financial accounting is used by stockholders.
Different between financial accounting and managerial accounting.

Different between financial accounting and managerial accounting.

Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting.

Exercise 19-1Richard Larkin has prepared the following list of statements about managerial accounting and financial accounting. Identify each statement as true or false.1. Financial accounting focuses on providing information to internal users.2. Analyzing cost-volume-profit relationships is part of managerial accounting.3. Preparation of budgets is part of financial accounting.4. Managerial accounting applies only to merchandising and manufacturing companies.5. Both managerial accounting and financial accounting deal with many of the same economic events.6. Managerial accounting reports are prepared only quarterly and annually.7....