1 year, 4 months ago
via ask.inc.com
Why is there a difference in accounting and financial accounting?
Isn't all accounting financial? What websites, forums or blogs will teach me the differences between accounting and financial accounting?
Separate topics with commas, or by pressing return. Use the delete or backspace key to edit or remove existing topics.
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$1 Answer
You are correct in that all accounting is financial. However there are different types of accounting and financial is one of them. Financial accounting is used by both external and internal users. These reports are factual and can help external users or investors make decisions regarding a company. Another type of accounting is management accounting. This type of accounting is used by those inside the company only to make decisions and forecasts for their own use. No rules or regulations apply to this type of accounting. Financial accounting must follow GAAP (Generally Accepted Accounting Principles). Without regulations on reporting on the financial accounting side, external users would not be able to truly judge a company’s worth in comparison to other companies. Consistency in reporting is a key ingredient. Other types of accounting not discussed are auditing, tax accounting and cost accounting.
Sources:
http://www.accountingcoach.com/online-accounting-course/financial-accounting.html
http://en.wikipedia.org/wiki/Differences_between_managerial_accounting_and_financial_accounting
Sources:
http://www.accountingcoach.com/online-accounting-course/financial-accounting.html
http://en.wikipedia.org/wiki/Differences_between_managerial_accounting_and_financial_accounting
You can leave an optional "tip" with Mahalo's virtual currency, Mahalo Dollars. If you are asking a difficult question that might require some research, or if you'd like a wide variety of feedback, a higher tip often leads to more answers to your question.
M$Report Abuse
