Final answer:
Managerial accounting and financial accounting are two branches of accounting that serve different purposes.
Step-by-step explanation:
Managerial accounting and financial accounting are two branches of accounting that serve different purposes.
Managerial accounting focuses on providing information to internal users such as managers and employees of a company. It helps in decision-making, planning, and controlling operations. Examples of managerial accounting information include budgets, cost analysis, and performance reports.
Financial accounting, on the other hand, focuses on providing information to external users such as investors, creditors, and government agencies. It provides a comprehensive and standardized view of a company's financial performance through financial statements like the balance sheet, income statement, and cash flow statement.
In summary, managerial accounting is used internally for decision-making purposes, while financial accounting is used externally for reporting and transparency purposes.