This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: ACC 220 Week 5 DQ 1 Financial accounting and management accounting both prepare and analyze financial data. However, certain aspects of these two fields are very different. Financial - statements that are used by EXTERNAL forces (shareholders, legal, etc) a. Purpose is to demonstrate past performance of the organization b. Follow a specific set of guidelines established by government entities c. Used and shared by the entire public, available to anyone Managerial - statements or processes that are used INTERNALLY a. Purpose is to predict or change future performance of the organization b. Can be created or follow any set of rules or guidelines c. Used internally by the organization and, most likely, remains confidential and away from competition. While users of managerial accounting are primarily those who operate within organizations, such as employees and managers, financial accounting users are those who operate outside...
View Full Document
- Spring '11