Managerial and financial accounting

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Managerial and financial accounting Within in this paper, Team C will differentiate between two types of accounting, financial and managerial. Team C will do this by examining the two types of accounting, and referencing what type of information is provided by each style of accounting. The knowledge of how business use each type of accounting, and the decision that are made on the basis of each style will discussed within the paper. Financial accounting is a process of recording, summarizing, analyzing, and interpreting the financial transaction of an organization. It mainly involves preparation of the financial statements and starts from journal ends with making of income statement and balance sheet. These statements are statutory compulsory to prepare for the organization. It serves as a base for the management accounting reports. These statements have to be periodically prepared as per the statutory prescription. Therefore, a financial accountant’s job is primarily to record the business transactions, prepare financial statements, which show the working results of the organization for a given period and its financial condition at a given point of time. There is also a statement of the revenues earned and the expenses incurred in the last financial period. The result is the net profit or loss. The financial period often consists of a year. The Balance Sheet provides the information about the overall position of the company. It shows the assets of the companies and the liabilities of the company. It tells you how the company is financed and the structure of the company’s financial position. The cash flow statement begins with the company's "cash and cash equivalents" and then goes on to calculate the real cash inflows and outflows. This is necessary as the profit made is not equal to the cash increased. Cash is like the blood of the company. Apart from these,

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