ACG Unit 1 DB - analyze a business situation or opportunity...

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The primary roles of financial and managerial accounting functions are many times confused as the same. However the roles are actually very different. In management accounting, the primary users supply information to managers of an organization. Managers are considered to be people within the organization. In financial accounting, information is given to outside parties as well as the organization’s managers. Government agencies and investors are examples of some of the outside groups that are involved in financial accounting. Managerial accounting provides the essential data with which the organizations are actually run. Managerial accountants complete many different reports. Some reports show up-to-date information on important factors like sales and orders. Other reports pinpoint comparison to past and present managerial performance to compare results to plans. Analytical reports are completed as needed to search specific problems for example, a loss in profits. Other reports
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Unformatted text preview: analyze a business situation or opportunity for future events. Financial accounting is focused on “producing a limited set of specific prescribed annual and quarterly financial statements in accordance with Generally Accepted Accounting Principles, or GAAP.” In order to protect public interest, financial accounting is regulated by the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the Public Company Accounting Oversight Board (PCAOB). References Bushman, M. (2007, May 07). The Differences Between Financial Accounting and Management Accounting . Retrieved March 27, 2010, from associated content: ounting_pg2.html?cat=3 Garrison, R. H., & Noreen, E. W. (2009). Introduction to Managerial Accounting (Cost or Management Accounting) . Retrieved March 27, 2010, from Accounting for Management:
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