Management Acc

Financial bill: Communicates economic education to individuals and organizations that are impertinent to the direct operations of the caller-out Stresses the form in which it is communicated Is establish 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 fiscal statements. Financial accounting is mainly developed for external users. What ordure we find in a balance sheet? What does it classify 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 generally, what is the wealthiness of the organization. Another aspect, when we prepare a balance sheet, an income statement, on that point are legal constraints, rules, general princ iples that have to be followed. Everything is strictly regulated, there are very strict rules. I.e.: the mostly Accepted upstarts report Principles (GAAP): Belgian GAAP, etc. Management Accounting: Assumption: a chief executive officer essential decide whether or not hell prepare a new 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) recitation: are we going to outsource part of our fruit in another coun bear witness? This decision mus t alike be based on information, which will! neither be place in a financial statement. In prudence accounting, we try to create information for intern purposes, like managers. Is that product paid or not, what is going to be the price supercharged for this new product, how do people perform in my company, etc.? The drill field is thus antithetical with respect to the 2 handle of accounting. In management accounting, every decision is different and creates a...If you take to get a full essay, order it on our website: OrderCustomPaper.com

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