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Managerial and Financial Accounting Free Essay, Term Paper and Book Report

Managerial and Financial Accounting There are two different avenues of accounting reporting; financial or external reporting and managerial or management accounting used mostly internally. While financial accounting reports the past results, the history of an organization’s finances, managerial accounting produces forecasted estimates or projected goals. Financial accounting is subject to external regulation and the GAAP; managerial accounting is not generally speaking. Managerial accounting is meant to be used for making decisions by management and is future-oriented and dynamic where financial accounting is non-dynamic and backward looking not the best tool for decision-making (Bromwich, 1988). Financial accounting is a gathering of past data for a period of time communicated to the external world in reports such as balance sheets, income statements and cash flow statements. This financial data shows investors, creditors, government agencies and other external groups of people how the company has performed for that period of time usually compared to a previous period in time......

Word Count: 1285
Page Count: 5.1  (250 words a page / double spaced)


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