Chapter 1, Problem 2Q

To determine

Concept introduction:

Financial accounting is an art of recording, summarizing and presenting the financial information in a appropriate output. The person who does accounting is called “Accountant”. The accountant follows some principles to do the Accounting; the principles are called ‘Accounting Principle’.

Managerial accounting is the branch of accounting used to generate reports for the purpose of decision makings by managers and his team. The manager uses various types of reports like cost report to take the decision on the costing. The cost of the product is helps us to find out the profit of business.

To identify:

Primary difference leads to other differences in managerial and financial accounting.