Question

Distinguish between managerial and financial accounting on one of the items below:

1. Users and decision makers.
2. Purpose of information.
3. Flexibility of practice.
4. Time dimension.
5. Focus of information.
6. Nature of information.

Answer 1

Step 1

Distinguish between Managerial accounting and financial Accounting

Users and decision makers

Managerial Accounting	Financial Accounting
Under this accounting system, both monetary as well as non-monetary information is provided	The Financial Accounting is an system which focuses on the financial information
This accounting system assist the management in planning and decision making for future period	Under this system of accounting financial statements are prepared which are made available to the interested parties
The reports provides detailed analyses of performance of the organization on both fronts i.e. financial as well as physical output	The Report under this accounting system provides only financial information which can be analysed under financial parameters
The reports under this system are prepared as and when required to make a plan or to take a decision for future planning	Under this system the reports are prepared periodically, which are based on accounting period.
The reports prepared under this system are used by the internal management only	The reports prepared under this system are used by internal as well external parties
The Reports prepared under this system are complete and detailed, based on which internal management can take decision in future planning	The reports under this system are only summarized reports indicating the financial position of the organization
These reports are used by the internal management, hence these are neither published nor audited by the auditors	These reports are required to be published and audited by the auditors.