Difference between Financial Accounting and Cost Accounting
Following is the difference between Financial Accounting and Cost Accounting
Financial Accounting | Cost Accounting |
1.Provides information to external | 1.Provides information to internal users. |
2. Provides general purpose financial statementsand reports | 2. Provides special purpose statements |
3. Must conform to generally accepted accounting principles | 3. Must conform to information needs of management. |
4. Provides accounting data in monetary terms. | 4. Provides accounting data in monetary and non monetary terms. |
5.Financial statements are prepared on yearly or half yearly basis. | 5. Cost statements and reports are prepared more frequently i.e. weekly and daily basis. |
Other Related Accounting Articles:
- Limitations of Financial Accounting
- What is Cost Accounting ?
- Financial Accounting Vs Managerial Accounting
- What is financial Accounting and its primary concern ?
- Contribution of Cost Accounting to Management
- Management Needs and Accounting
- Financial Accounting
- Half-Year Convention Definition
- Disadvantage of Cost Accounting
- Organization Definition
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