Final answer:
Financial accounting focuses on recording and reporting financial transactions for external stakeholders, while management accounting provides information for internal stakeholders to assist in decision-making and resource allocation.
Step-by-step explanation:
Financial accounting focuses on recording and reporting financial transactions for external stakeholders, such as investors and creditors. It follows Generally Accepted Accounting Principles (GAAP) and is regulated by accounting standards and regulations.
Management Accounting, on the other hand, is focused on providing information for internal stakeholders, such as managers and employees, to assist in decision-making and resource allocation within the organization. It utilizes various methodologies such as cost accounting, budgeting, and performance evaluation.