Briefly Explain the Difference Between Financial and Managerial Accounting

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The Answer is Financial accounting consists of capturing and recording all the transactions that affect the company's financial state and then using these documented transactions to prepare financial statements for external decision makers, such as stockholders, suppliers, banks, and government agencies. These statements must be prepared in strict accordance tor the rules and guidelines of various agencies. Managerial accounting involves using both historical and estimated data in providing information that management uses in conducting daily operations, in planning future operations, and in developing overall business strategies. Managerial accounting provides data to enable the firm's managers to assess the profitability of a given product line or specific product, identify under performing sales regions, establish budgets, make profit forecasts, and measure the effectiveness of marketing campaigns.

Briefly Explain the Difference Between Financial and Managerial Accounting

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