
Financial Accounting v/s
Financial accounting or reporting is used to prepare financial statements to present the financial position of the entity. Financial accounting is mandatory for an entity and it has to follow Generally Accepted Accounting Policies (GAAP) for accounting. The statements produced under financial accounting include the Income statement,
On the other hand, managerial accounting is used for the purpose of generating internal reports and it is not mandatory for an organization. Reports generated using managerial accountings are budgets, Inventory usage, efficiency reports etc. Users of managerial accounting reports are only internal people like Managers, Directors, head of departments etc.
To identify:
The type of accounting information used by the user, Financial or managerial

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Chapter 1 Solutions
Horngren's Accounting (12th Edition)
- Please provide the correct answer to this financial accounting problem using valid calculations.arrow_forwardCan you help me solve this general accounting question using the correct accounting procedures?arrow_forwardI need the correct answer to this general accounting problem using the standard accounting approach.arrow_forward
- I need the correct answer to this general accounting problem using the standard accounting approach.arrow_forwardCan you help me solve this general accounting problem with the correct methodology?arrow_forwardCan you solve this financial accounting problem using appropriate financial principles?arrow_forward
- Can you solve this general accounting question with the appropriate accounting analysis techniques?arrow_forwardI am looking for the correct answer to this general accounting problem using valid accounting standards.arrow_forwardPlease explain the correct approach for solving this general accounting question.arrow_forward
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