Financial and Managerial Accounting by Sue Haka, Jan Williams, Mark S. Bettner and Joseph V. Carcello (2009, Hardcover) for sale online | eBay (2024)

FAQs

What is financial vs managerial accounting GAAP? ›

The main reason for that is that managerial accounting mainly involves budgeting and forecasting, and it's meant for internal use. In contrast, financial accounting must prepare reports for internal and external users (investors, lenders, regulators, creditors) and comply with GAAP standards.

In general, accountant jobs emphasize recording and reporting the flow of money through financial statements. Financial managers and financial advisors, for instance, oversee an individual's or organization's assets and liabilities, helping clients reach their financial goals.

Answer and Explanation:

Managerial accounting is used by the company for planning its future operations by making budgets, analysis, or other related activities that are for internal purposes. Financial accounting is used for reporting the past financial statements that provide useful information to its external users.

Financial accounting is concerned with reporting historical data to outside sources, while managerial accounting is concerned with reporting data to inside sources for the purpose of planning.

Which is harder, financial accounting or managerial accounting? Managerial or management accounting is considered to be easier, as it requires fewer journal entries and mostly involves budgeting and forecasting.

Financial accounting does play a role in managerial accounting, mainly in the form of financial statements, which are necessary when creating strategic plans, streamlining operations, solving logjams, and creating business budgets and forecasts.

Managerial accounting is not governed by GAAP, so there is unending flexibility in the types of reports and information gathered. Managerial accountants regularly calculate and manage “what-if” scenarios to help managers make decisions and plan for future business needs.

Managerial accounting. focuses on internal users—executives, product managers, sales managers, and any other personnel within the organization who use accounting information to make important decisions.

Audience. The main difference between managerial and financial accounting is the user of the data. Managerial accounting provides financial information internally to executives, managers and employees. On the other hand, financial accounting focuses on external users such as lenders, investors and regulatory agencies.

Managerial accounting almost always reports at a more detailed level, such as profits by product, product line, customer, and geographic region. Financial accounting reports are more likely to be distributed to outsiders, while the results of managerial accounting are more likely to only be used by insiders.

Why don't all companies use the same managerial accounting systems? ›

The systems must serve the competitive needs of companies working to uniquely serve specific customers in specific markets. The systems must provide different sets of financial statements; some companies don't provide outsiders with both an income statement and a balance sheet.

The three Golden Rules of Accounting are- 1) Debit what comes in - credit what goes out. 2) Credit the giver and Debit the Receiver. 3) Credit all income and debit all expenses.

I would say before taking managerial accounting, you should first take financial accounting. Since the financial accounting consists of basic accounting principles. I don't think it matters as they don't overlap conceptually much. Financial is generally easier for students as it's very basic at that level.

Financial Accountants and Management Accountants both have similar earning potential.

GAAP consists of a common set of accounting rules, requirements, and practices issued by the Financial Accounting Standards Board (FASB) and the Governmental Accounting Standards Board (GASB). GAAP sets out to standardize the classifications, assumptions and procedures used in accounting in industries across the US.

Managerial accounting is not governed by GAAP, so there is unending flexibility in the types of reports and information gathered. Managerial accountants regularly calculate and manage “what-if” scenarios to help managers make decisions and plan for future business needs.

Unlike managerial accounting–which follows internally created rules and processes–financial accounting activities and processes must follow the Generally Accepted Accounting Principles (GAAP).

Managerial accounting does not have to adhere to GAAP so long as the ad-hoc reports are for internal use only, and not official. However, all financial statements like the Profit & Loss, Balance Sheet, etc must follow GAAP.