Compare and contrast financial accounting and managerial accounting Student’s name Course Instructor Date of submission Introduction Financial accounting and managerial accounting are two major accounting methods. The two accounting relates to each other directly in how they are taken in business. During the study students taking business are exposed to both managerial and financial accounting concepts (Hiebl 2014). Many students do not differentiate the difference between managerial accounting and financial accounting. Managerial accounting and financial accounting are always closely related and at the same time mix well. But in some cases there is a difference between managerial and financial accounting. This paper will compare and contrast the managerial accounting and financial accounting. In broad elaboration managerial accounting is known in business to prepare information for an internal decision within an organization while financial accounting in some cases there is a difference between managerial and financial accounting. Managerial accounting is known in business to prepare information for an internal decision within an organization while financial accounting gives information that is used in making decisions of a company external stakeholders like creditors investors creditors and potential investors. Finacial accounting and financial reports provide essential information to potential investors or investors for incorporation into the valuation process. Therefore managerial and financial accouting relates and differ in several aspects as discussed. References Hiebl M. R. (2014). Upper echelons theory in management accounting and control research. Journal of Management Control 24(3) 223-240. Warren C. S. & Jones J. (2018). Corporate financial accounting. Cengage Learning. Weygandt J. J. Kimmel P. D. & Kieso D. E. (2015). Financial & Managerial Accounting. John Wiley & Sons. [...]
Compare and contrast financial and managerial accounting. Provide one specific, real-life example of how either financial accounting helps external stakeholders make informed decisions or how managerial accounting helps managers to improve operational and financial performance.