Question

In 200 words or more, What are the main differences in the role of financial accounting and managerial accounting? Original work please

Answer 1

Key differences between role of financial accounting and managerial accounting are as per the following:

(a) Financial accounting reports are prepared for presentation to different stakeholders, for example, shareholders, loan lenders, creditors; be that as it may, managerial accounting reports are prepared for internal reporting between the managers of the concerned organization.

(b) In financial accounting, the focus is more on presentation of past results, nonetheless, in managerial accounting; the focus is more on prediction of future results.

(c) Financial accounting information ought to be 100% accurate. There ought not be any discrepancy. Be that as it may, for managerial accounting, the information are estimates and 100% accuracy isn't required.

(d) Financial accounting ought to be made utilizing GAAP. Nonetheless, managerial accounting isn't important required to be complied with GAAP.

(e) Financial accounting is obligatory, be that as it may, managerial accounting isn't compulsory.