Question

Define financial management. What are some other examples of the differences between financial management and financial accounting? Give examples.

Answer 1

Financial management focuses on ratios , equity and debt. It refers to the efficient and effective management of money in such a manner to as to accomplish the objective of an organization.Its specialized function is directly with the top management.

There are three types of financial management :- Capital structure , Capital Budgeting and Working capital management

The differences between management accounting and financial accounting include:

Financial accounting	Financial management
Accounting is mainly for those outside it, such as shareholders.	Management accounting provides information to people within an organization
Financial accounting is required by law	It is not required by law