Management Acc

Financial bill: Communicates economic cultivation to individuals and organizations that are away 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 pecuniary statements. Financial accounting is mainly developed for external users. What whoremonger we find in a balance sheet? What does it rate 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 to a greater extent 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, g eneral principles that have to be followed. Everything is strictly regulated, there are very strict rules. I.e.: the chiefly Accepted history Principles (GAAP): Belgian GAAP, etc. Management Accounting: Assumption: a chief executive officer must(prenominal) decide whether or not hell prepare a refreshing 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) usage: are we going to outsource part of our fruit in another counattempt? This deci sion must alike be based on information, wh! ich will neither be apply in a financial statement. In prudence accounting, we try to create information for intern purposes, like managers. Is that product bankable or not, what is going to be the price supercharged for this new product, how do people perform in my company, etc.? The occupation field is thus antithetical with respect to the 2 palm of accounting. In management accounting, every decision is different and creates a...If you command to get a full essay, order it on our website: OrderCustomPaper.com

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