Question

What is diffence between financial accounting and management accounting

Answer 1

Financial Accounting

1.Financial Accounting is an accounting system that focuses on the preparation of financial statement of an organization to provide the financial information to the interested parties.

2. Its objective is to provide financial information to outsiders.

3.Only shares Monetary information .

Management Accounting

1.The accounting system which provides relevant information to the managers to make policies, plans and strategies for running the business effectively is known as Management Accounting.

2. Its objective is to assist the management in planning and decision making process by providing detailed information on various matters.

3.Shares both Monetary and non-monetary information.