Difference Between Accounting And Financial Accounting

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Nama : Nor Diana Nordin Matric No : G1320160 1. How is management accounting different from financial accounting? The financial accounting and management accounting are both of them serve different purposes. For financial accounting, they are concerning about providing accurate information of entire organization or materially significant business units (accounting statements for the company during the year) to external people for instance, stakeholders, creditors, investors and others who are outside an organization. Financial accounting is more focuses on history or specific period of time in the past and allowed the external people to see how really the company has performed. Next, this type of accounting should follow specific…show more content…
Next, management accountant need to have a very good business understanding and analytical and logical problem solving skills since management accountant will help company to plan, record and control all the activities in order to help in decision making process. Moreover, they must be able to offer advice that strategic and practical, help to manage risk and also need they need to have ability to explain any complex financial information in easy and clear way since they will make and support key decisions for all stages in decision making process. Last but not least, they need to have very good communications and presentation skills since they will present and provide accurate information to the internal…show more content…
How far do you think that financial analysis can enable business managers to make the right decisions? Financial analysis is actually part of the financial decision making process which is including analyzing company’s financial problems and make decision which action should be taken. In order to make decisions, the person in charge must be able to analyze potential problems and also analyze the consequence of all the alternative actions. There are 3 main sources of data for financial analysis which are a company's balance sheet, income statement, and cash flow statement. By having company balance sheet, it will be able to help person in charge know the financial and physical resources that a company has for future business activities. There are two main elements of the balance sheet. There are assets and liabilities Assets generally including both which are current assets and noncurrent assets .The total amount of assets and the makeup of asset accounts are of useful information to financial

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