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LO 1.2What are the key differences between financial accounting and managerial accounting?

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Answer:

Difference between managerial accounting and financial accounting is described as follows:-

  • Managerial accounting is the accounting process for observing and recording business transaction whereas information and facts of accounts that are collected to make financial statement called financial accounting.
  • Managerial accounting reports about the issue and obstruction that are occurring in the business processes and the measure to fix it are planned whereas financial accounting deals with profit generation .
  • Managerial account processes by accounting every level of business internally but financial accounting look business as a whole level.
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