Managerial Accounting vs Financial Accounting

What is the main objective of financial accounting?

• To assist management in decision-making

• To create internal reports for managers

• To allocate resources within a business

• To report on a business's financial health to external parties

What is the main objective of managerial accounting?

• To create internal reports for managers

• To assist management in decision-making

• To allocate resources within a business

• To report on a business's financial health to external parties

Who is the target audience of financial accounting?

• All employees of the business

• Regulators and the public

• Existing and potential investors, lenders, and creditors

• Internal managers

Who is the target audience of managerial accounting?

• All employees of the business

• Internal managers

• Existing and potential investors, lenders, and creditors

• Regulators and the public

What is the focus of financial accounting?

• Future planning and decision-making

• Presenting information to internal managers

• Reporting on past transactions and events

• Managing risks within a business

What is the focus of managerial accounting?

• Future planning and decision-making

• Managing risks within a business

• Presenting information to internal managers

• Reporting on past transactions and events

What is the scope of financial accounting?

• Narrow, focusing on specific departments and cost centers

• Broad, consolidating results of all business units

• Limited to financial information only

• No specific scope

What is the scope of managerial accounting?

• Narrow, focusing on specific departments and cost centers

• No specific scope

• Broad, consolidating results of all business units

• Limited to financial information only

What is the priority in financial accounting?

• Using estimates and shortcuts

• Being relevant and timely

• Following a strict framework

• Being objective and precise

What is the priority in managerial accounting?

• Being objective and precise

• Following a strict framework

• Being relevant and timely

• Using estimates and shortcuts