221HSpring2011-H1

221HSpring2011-H1 - only shows report of the past events....

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BMGT 221H Spring 2011 Homework 1 “I pledge on my honor that I have not given or received any unauthorized assistance on this assignment” Signed:……………………………………………. NAME:……………………………………………. . What are the differences between Financial Accounting and Management Accounting? (write no more than 200 words below) T here are a lot of differences between financial accounting and management accounting. F irst of all, the two accounting systems provide information to different people separately. While financial accounting gives information to external ones such as lenders and government agencies, management accounting shows the work to internal people like mangers and employees for them to make better performance. A dditionally, the purposes of the two accounting systems are different. Management accounting gives officers useful information for future plan. Financial accounting
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Unformatted text preview: only shows report of the past events. What is also important to notice is that the report format of management accounting can be flexible based on what information the officers want. However, the rule for the format of fiancial accounting is very strict that everything should apply to the generally accepted accounting principles (GAAP). A lso, the nature of information of management accounting is more rely on estimates while financial accounting is objective and verifiable. The units of measure of the two accounting systems are different as well while management accounting uses physical measures of time or number of objects. T he last important thing is that management accounting is only provided when needed, but financial accounting should be prepared periodically....
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This note was uploaded on 02/02/2012 for the course BMGT 221H taught by Professor Linsley during the Spring '11 term at Maryland.

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