Describe the Major Differences Between Managerial Accounting and Financial Accounting

question 39

Essay

Describe the major differences between managerial accounting and financial accounting.
Managerial accounting:
Internally focused
No mandatory rules
Financial and nonfinancial information; subjective information possible
Emphasis on the future
Internal evaluation and decisions based on very detailed information
Broad,multidisciplinary

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Definitions:

Mutual Funds

Investment funds that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Annual Reports

Annual reports are comprehensive documents produced by companies at the end of an accounting year, detailing their operational and financial performance, intended for shareholders and potential investors.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against various risks.

Mutual Fund

is an investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.