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4. To fund its expansion in the upcoming year, Deacon Corporation negotiates a $4,000,000 loan with a local bank. The bank re
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4. For the purpose of recording proper accounting and to create report for the bank the company should use financial accounting. Financial accounting refers to record to transactions and presenting them via financial statement for the use of both internal as well as external parties. Managerial accounting on the other hand refers to various internal processes that is used by the company for recording the business transactions. Financial accounting considers all the business activities as a whole and not just certain products and therefore, it is more beneficial for the lenders of the loan.

5. For identification of consistency in the accounting practices one can financial accounting is more appropriate as financial accounting focus on compliance with the accounting standards and taxation prevailing in the country as compared to managerial accounting which simply focuses on compilation of information for internal use of the company.

6. Managerial accounting focuses on department wise along with product wise comparison of the data from the previous years whereas financial accounting does not provide product wise or department wise information. Therefore for the purpose of planning the meeting with the production staff the management should focus on managerial accounting rather than financial accounting

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