Student’s Name Lecturer’s Name Course Number Date Accounting What's the difference between managerial and financial accounting? What are each used for? Can you also provide some examples and descriptions of reports used in each area? Financial accounting is used in presenting the financial health of a company to its external stakeholders. Managerial accounting on the other hand is involved in the preparation of financial reports that can be used by internal stakeholders to improve the performance of the business. The external users of financial accounting may include government creditors investors or regulatory agencies. A Managerial document such as a budget can be used by line manager to analyze the profitability of the individual units to the business (Money-zine). Fig. 1: Managerial and Financial Accounting Differences Fig. 2: Overlapping Relationship between Managerail and Financial Accounting The most commonly used financial reports include a Balance Sheet Cash Flow Statement deny its patients full medical care. Creditors invest their money in a healthcare organization and wait for payment. They usually do a financial report review to be comfortable that the organization is capable of completing payment (Harrison & William 79). The government uses the accounting information of the healthcare facilities to calculate the taxes that the organization should pay. Taxpayers are also owners of local healthcare facilities. They are responsible for ensuring the profit generated can meet the cost of operation. Benefactors donate their money to healthcare organizations and therefore are responsible for reviewing the financial performance of the healthcare facilities (Harrison & William 80). Works Cited Accounting Tools. Double Entry Accounting. 2016 <www.accountingtools.com 20 Jan. 2017. Harrison Carlene and William P. Harrison. Introduction to Health Care Finance and Accounting. Cengage Learning 2012. Pp 78-80. Money-zine. Financial versus Managerial Accounting. 11 Oct. 2016 <www.money-zine.com 20 Jan. 2017. [...]
From Lauren: Hey there, I have some questions for you that I'm hoping you can help me with. I'll break them into bullets to make it a little easier to manage. Here you go: What's the difference between managerial and financial accounting? What are each used for? Can you also provide some examples and descriptions of reports used in each area? I've also heard the term "double-entry accounting". Can you explain what that is? I know there will be various stakeholders, but I'm not sure who they may be. Can you identify some of the different financial stakeholders in a health care setting? Will you also include examples of the types of reports or reporting each stakeholder will need? Thanks so much for your help. I look forward to learning much from you! Lauren Write a 700- to 1,050-word e-mail response to Lauren. Include any graphics, tables, or diagrams you wish.