The difference between financial and managerial accounting .

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.

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Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.

Answer 6

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.

Answer 7

Chapter 1, Problem 1LO

To determine

The difference between financial and managerial accounting.

Answer 8

Expert Solution & Answer

Explanation of Solution

Financial accounting: The process of recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a specific period is known as financial accounting. The financial statement consists of the cash flow statement income statement, the statement of retained earnings, and balance sheet.

Managerial accounting is the process of finding, measuring, analysing, interpreting, and communicating information that are designed to meet the goals of the organization.

The differences among financial accounting and managerial accounting are as follows:

Financial accounting is concerned with financial, historical, and regulated data of the company, whereas managerial accounting deals with economic, unregulated, and nonfinancial data.
Financial information is mainly designed to meet the needs of outsiders such as creditors and investors, whereas managerial information is primarily used to meet the needs of insiders such as employees, managers, and executives.
Financial accounting records all the data of past, present, and future and it is said to be a continuous reporting, whereas managerial accounting records only the past data from the annual report.