Questions On Accounting And Management Accounting

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Subject Name: Accounting for Decision Making Course Name: Bachelor of Commerce (Applied) Semester/Year: 01st Semester 2015 Due Date: Monday 23rd March 2015 Student Name: Phuwanat Tharanop ID: 1499002 ASSIGNMENT ONE PART ONE: 15 marks Research Questions Q1: Write a detailed summary that describes and distinguishes in-depth the different roles of financial accounting and management accounting ‘play’ in a professional service organisation. Answer: Financial accounting is the process of summarizing, analyzing, recording and reporting any transactions occur in the business. It helps businesses to know their position while it is performing. The processes involving are identification, measurement and communication of financial information. It provides an accurate picture of its financial position and performance. The primary objective of financial accounting is the preparation of financial statements - including the balance sheet, the income statement and the statement of cash flow. The balance sheet is usually made at a point in time to show the company financial position. The income statement is usually made in a period of time specified by the company and the statement of cash flow is usually made monthly to show money movements into or out. They are primarily for external users of financial reports such as investors, suppliers and government agencies. Meanwhile, Management accounting is the process of identifying, measuring, analysing, interpreting, and communicating
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