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What is the difference between Financial and Management Accounting concerning Time Focus?

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Final answer:

Financial accounting focuses on reporting past financial performance while management accounting is oriented towards future planning and decision making, aiding in intertemporal decision making.

Step-by-step explanation:

The main difference between Financial and Management Accounting in terms of Time Focus relates to the orientation each form has concerning financial information and decision-making. Financial accounting is historically oriented; it provides reports based on historical data that help stakeholders assess an entity's past performance.

In contrast, management accounting is future-oriented. It encompasses both historical and predictive data and assists management in planning, decision-making, and control. It supports the decision-making process through forecasts, budgets, and various analytical tools that anticipate future business conditions and guide managers in resource allocation and strategic planning.

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