Chapter 18, Problem 2DQ

To determine

Managerial accounting:

Managerial accounting is a process of analyzing, evaluating and interpreting the financial data to achieve the objective of a business.

Financial Accounting:

Financial accounting is concerned with classifying, summarizing, and recording the financial information of a business organization during a specified period.

To determine:

Differentiate managerial and financial accounting based on following aspects.

a. Users and decision makers.

b. Purpose of information.

c. Flexibility of practice.

d. Time dimension.

e. Focus of information.

f. Nature of information.