logo image

Different Financial Account and Management Account Essay

COMA (Chartered Institute of Management Accountants) defines Management accounting as “Management Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information that used by management to plan, evaluate, and control within an entity and to assure appropriate use of an accountability for its resources”.

Financial accounting is concerned with providing information of the scorecard by which a company’s past performance to External user (Ex: stockholder, creditor, and shareholder) I Financial Accounting I Management Accounting I Format I accordance with a specific format by SIS I No specific format I Objectives I l) to disclose the end results of the businesses) to disclose the financial condition of the business on a particular date I help management by providing Information that used by management to plan, evaluate, and control I

Planning and control I helps in making Investment decision, In credit rating I helps management to record, plan and control activities to aid decision-making process I Accounting process I Follows a full process of recording, classifying, and summarizing for the purpose of analysis and interpretation of the financial information I Cost accounts are not preserved under Management Accounting but analyses necessary data from financial statements and cost ledgers.

I Legal/rules

Need essay sample on "Different Financial Account and Management Account"? We will write a custom essay sample specifically for you for only $ 13.90/page

I Drafted according to GAP – General Accepted Accounting Procedure. I Drafted according to management suitability. I Users I External users, such as shareholders, bank and creditors. I Internal users such as managers and employees. I Mandatory Vs.. Optional I Preparing financial accounting reports are mandatory especially for limited companies I There are no legal requirements to prepare reports on management accounting report frequency I annually, seem- annually I whenever needed ; daily, weekly, monthly.

I Focus I history I future I Importance I The financial accounting, the origin of preservation of knowledge ivies emphasis on recording keeping on a whole firm basis for the purpose of decisions by all the users of accounting information, both external and internal. Management accounting uses cost data for provision of information for strategic management decisions. It is mainly concerned with the provision of help to the managers to asses them in the process of decision making and design business strategies. I The deferent between Financial Accounting and Management accounting: IQ .

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy