Railway Accounts Department Examinations

Showing posts with label financial accounting. Show all posts
Showing posts with label financial accounting. Show all posts

Monday, July 27, 2020

Differences between Financial Accounting and Management Accounting

Financial Accounting vs Management Accounting | Top 9 Differences

Differences between
SN
Item
Financial Accounting
Management Accounting
1
End user
Mostly outsiders (Govt,
Tax bodies, Investors etc)
In house Management
2
Legal obligation
Statutory
Non statutory
3
Coverage
Company as a whole
Segment wise
4
Type of Information
Monetary value
Monetary, Quantity & Quality
5
Format
Standard
Not specified or customised
6
Source
Internal
Internal & External
7
Principles/flexibility
GAAP (Generally Accepted
Accounting Principles)
No specific ones
8
Analysis
Not much
Mostly analytical
9
Ends & Means
Ends in itself
Means to end
10
Nature
Objective / Measurable
Subjective / Interpretations / Personal
opinions
11
Periodicity
At the end of Financial Year
No such period.  But information may
 be required at any time
12
Audit
Subject to Independent Audit
Need not be audited