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Managerial versus Financial Accounting

Managerial versus Financial Accounting - Managerial and...

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Managerial versus Financial Accounting Financial statements are used by both external users and internal management and provide general  information about the entire company. For example, the balance sheet reports total inventories and  the income statement reports cost of goods sold, but the costs of individual products are not  disclosed to the public. Internal management needs detailed information to make decisions about its  business. A comparison of managerial and financial accounting shows the differences between the  two sets of information.
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Unformatted text preview: Managerial and Financial Accounting Comparison Managerial Accounting Financial Accounting Users Internal managers Creditors, investors, analysts, and other external users Guidelines for preparation Flexible GAAP—rigid Purpose Decision making and control information General information for credit and investment decisions Frequency of preparation As needed Annually and quarterly Independent opinion None required Auditor's opinionopinion Type of information Specific to project or management action—may be detailed and include estimates General purpose—very few estimates...
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