Question

Name three key differences between Financial & Managerial Accounting.Your initial post will be 400 words

Answer 1

The three key differences are:

Purpose:

The FA focuses on the preparation of the financial

statements of a firm with a view to providing

financial information to the stockholders in

particular and also to other stakeholders.

In contrast the managerial accounting seeks to

provide information to the mangers of a firm for

the purpose of planning and controlling the activities

of the firm.

Regulation:

Financial accounting is regulated by the Statues and

the accounting standards with respect to its form,

timing, publication etc.

Managerial accounting is not so regulated. It is per the

internal regulations of the firm and has a lot more

flexibility. The reports are not published as they are

for use by the managers only for internal decision

making.

Infomation content and extent of analysis:

Financial accounting provides only monetary inform-

ation,whereas, managerial accounting provides

monetary, non monetary and even qualitative

information.