Answer to Question #238675 in Management for jovani

Question

Write suitable discussion related to (i) the definitions of accounting and the forms of the

accounting as a discipline and (ii) the similarities and differences of Financial Accounting and Management Accounting.

Answer 1

Question i

Accounting refers to a process of recording financial transactions concerning a business; these include analyzing, summarizing, and reporting the transactions. There are different accounting forms; these include financial accounting, management accounting, tax accounting, and auditing.

Question ii

Similarities

1. Both are forms an integral part of the accounting system

2. both deal with economic events

3. Both determine a measurement of costs in different accounting periods

Differences

Financial accounting involves a process of recording expenses, revenues, liabilities, and assets. In contrast, management accounting deals with the application of accounting techniques for specific c purpose to promote efficiency in an organization. External enterprises may use financial accounting information while management accounting information is used within the management of an organization.