Answer
Financial accounting is the procedure that facilitates the preparation of financial statements and reports with respect to the organization or entity in general for use by interested parties both external and within the organization. In contrast, managerial/administrative accounting is the process of measurement, identification, accumulation, communication and analysis of financial information utilized by the administration to plan, assess, and control resources and ensure their appropriate allocation and use within the organization.
Work Step by Step
Unlike financial accounting, managerial accounting does not have to comply with any standards and is mainly concerned with operational costs. On the other hand, financial accounting must comply with all set standards and present accounting information about the entity as a whole.
