BUS-A 100 Lecture Notes - Lecture 9: Management Accounting, Walmart, Accounts Payable
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BUS-A 100 Full Course Notes
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Document Summary
Even though both financial accounting and managerial accounting use the same basic numbers, there are some key differences. While the end result of financial accounting is to produce financial statements for parties outside the company, managerial accounting is primarily for those within the company. The information gained from a managerial accounting system is used by managers to more efficiently run the company. And w hile financial accounting must comply with the specific rules of either gaap or ifrs, managerial accounting has more latitude. Since the results of the managerial accounting system stay within the company, the system can be set up in any way that will accommodate the managers" needs. Another difference between financial and managerial accounting is that financial accounting is basically a summary of historical information. Financial accounting reports the results of the transactions that occurred during the prior period.
