Financial Accounting means it is a process of recording, summarizing and reporting the many of transactions from a business, so as to provide an accurate picture of its financial position and performance. The primary objective of financial accounting is the preparation of financial statements – including the balance sheet, income statement and cash flow statement.
Financial accounting and managerial accounting are two different but equally important branches of accounting. Overall accounting includes calculation of financial figures such as tax, profit, expenses, income and many others. However in this article we will only discuss the areas related to the cost
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.
Financial accounts provide information to inside users i.e, management of accounting entity and to outside users like shareholders, investors, bankers, government departments, trade unions and general public. The information provided by financial accounting is presed in the form of profit and loss account/income statement
Controlling and Costing Materials: After studying this chapter you should be able to: Effective materials management is essential in order to (1) provide the best service to customers, (2) produce at maximum efficiency, and (3) manage inventories at predetermined levels to stabilize investments in
Branches of Accounting: Learning Objectives: What are the branches of accounting? Accounting has three main forms of branches, viz, financial accounting, cost accounting, and management accounting. These forms of accounting have been developed to serve different types of objectives. Financial Accounting: It is the
Difference Between Financial and Managerial Accounting (Financial Accounting Vs Managerial Accounting): Learning objectives of this article: Compare and contrast financial and managerial accounting. What is difference between financial and managerial accounting? Financial accounting reports are prepared for the use of external parties such as
Financial Accounting Definition: Financial accounting is the phase of accounting concerned with providing information to stockholders, creditors, and others outside the organization. Relevant Terms: Cost Accounting Managerial/Management Accounting
Introduction to Managerial Accounting: After studying this chapter you should be able to: Identify the major differences and similarities between financial and managerial accounting. Understand the role of management accountants in an organization. Understand the importance of upholding ethical standards. What is managerial accounting? Managerial accounting is concerned with