Management Acc

Financial bill: Communicates economic education to individuals and organizations that atomic number 18 extracurricular to the direct operations of the caller-out Stresses the form in which it is communicated Is ground on historical information It is about the balance sheet, the income statement, the fiscal statement of the company (the notes). The stakeholders (shareholders, clients, suppliers, the government, employees, etcetera) are interested by the financial statements. Financial accounting is mainly developed for external users. What female genitals we find in a balance sheet? What does it articulate us? The former(prenominal) financial performance of the company. The income statement gives us an overview of the expenses and revenues of the companies, their use, and more(prenominal) generally, what is the wealthiness of the organization. Another aspect, when we prepare a balance sheet, an income statement, on that point a re legal constraints, rules, general principles that have to be followed. Everything is strictly regulated, there are very strict rules. I.e.: the chiefly Accepted method of accounting Principles (GAAP): Belgian GAAP, etc. Management Accounting: Assumption: a chief executive officer must(prenominal) decide whether or not hell prepare a advanced crossway. Where will he find the involve information (the price of the product, etc.

and more generally, all the necessary information)? argon the financial statements helpful in this case? No, they dont. early(a) object lesson: are we going to outsource par t of our fruit in another coun essay? This ! decision must alike be based on information, which will neither be fork out in a financial statement. In prudence accounting, we try to create information for intern purposes, like managers. Is that product useful or not, what is going to be the price supercharged for this new product, how do people perform in my company, etc.? The coat field is thus antithetical with respect to the 2 handle of accounting. In management accounting, every decision is different and creates a...If you exigency to get a full essay, order it on our website: OrderCustomPaper.com

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