Question

Conclusion of accountancy project for class 11

Answer 1

There are two types of accountancy:

1. Financial accounting

2. Management Accounting

Management accounting provides information to people within an organization while financial accounting is mainly for those outside it, such as shareholders.

Financial accounting is required by law while management accounting is not. Specific standards and formats may be required for statutory accounts such as in the I.A.S within Europe. This covers the entire organization while management accounting concerned with particular products.