Question

Management accounting is an extension of managerial aspects of financial accounting.” Discuss​

Answer 1

Explanation:

The given statement is true. In management accounting, also known as managerial accounting, the provision of financial related decision making matters are given to managers and hence we can say that this becomes an extension of managerial aspects of financial accounting. Hence it is of utmost importance that managers are well aware of accounting principles as their decisions will make huge impact on business accounts

Answer 2

Management accounting is an extension of managerial aspects of financial accounting as it employs the concepts and conventions of financial accounting.

• In the best interest of business, management accounting utilises the standards and procedures of both cost accounting and financial accounting.
• The principles both deal with economic activities and business activities and aims to measure the consequences and transactions of business operation.
• In addition to using other economic and finance standards, management accounting uses financial accounting data.
• Therefore, the main objective of financial accounting is transparency, while management accounting is concerned with educating the top management about the company's health and proposing changes.