Managerial and Financial Accounting

1235 Words Jan 14th, 2018 5 Pages
To begin with, when it comes to financial accounting, the financial reports prepared are primarily utilized by external users including but not limited to regulators, creditors and stockholders (Weygandt, Kimmel and Kieso, 2009). On the other hand, managerial accounting reports are primarily meant for internal users i.e. managers and other officers of the firm. These two branches of accounting can also be differentiated on the basis of the frequency of reports. While financial accounting reports are mostly prepared on a quarterly and annual basis, managerial accounting reports are prepared on a need basis (Weygandt, Kimmel and Kieso, 2009). Further, in addition to being largely condensed, financial accounting reports in the opinion of Weygandt, Kimmel and Kieso (2009) must be in adherence to the specific provisions of GAAP. Managerial accounting reports according to the authors tend to be rather detailed. Further, their presentation need not be in accordance with GAAP provisions.
Financial Information Utilization for Internal Purposes Managers and other officers of the firm must be equipped with the relevant information so that they can make better and well-informed decisions. For instance, the management of a firm may be interested in establishing whether the monthly payroll matches the budget or whether the revenues generated are…
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