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Categories >> Accounting >> Accounting General


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 Question Submitted By :: Accounting-General
I also faced this Question!!     Answer Posted By  
# 1
Financial accounting is the collection, recording,
classification and proper presentation of financial
information or date in such a way that all external agencies
such as income tax authorities, government, shareholders,
creditors of a company can understand it easily. From the
data presented by financial accounting, these external
agencies can easily understand what exactly is going on in a
company. They can know the financial strengths and
weaknesses of a firm by the financial data presented through
the process of financial accounting. Managerial accounting
is related to the accounting work done for the better
understanding of facts for the management of the company.
Management accounting is not done for any outside party, but
only for the company management to know where they should
give more attention to post better financial results.

Another difference between these two types of accounting is
that financial accounting is mandatory whereas management
accounting is optional.
Is This Answer Correct ?    14 Yes 2 No
Ameet Narayankhedkar

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