Chapter 1 - Financial Accounting and Accounting Standards - Review and Practice - Concepts For Analysis - Page 24: CA1-4

a) Financial accounting is the process in the preparation of financial reports relative to the enterprise as a whole for use by parties both internal and external to the enterprise and managerial accounting is the process of identification, measurement, accumulation, analysis, preparation interpretation and communication of financial information used by the management to plan, evaluate and control within an organization and to assure appropriate use of and accountability for its resources. b)The financial statements most frequently provided are the balance sheet, the income statement, the statement of cash flows and the statement of changes in owners or stockholders equity c)Financial statements are the principle means through which financial information is communicated to those outside an enterprise. There are four major financial statements. However, some financial information is better provided, or can provided only, by means of financial reporting other than formal financial statements. Financial reporting may take various forms.

a) Financial accounting is the process in the preparation of financial reports relative to the enterprise as a whole for use by parties both internal and external to the enterprise and managerial accounting is the process of identification, measurement, accumulation, analysis, preparation interpretation and communication of financial information used by the management to plan, evaluate and control within an organization and to assure appropriate use of and accountability for its resources. b)The financial statements most frequently provided are the balance sheet, the income statement, the statement of cash flows and the statement of changes in owners or stockholders equity c)Financial statements are the principle means through which financial information is communicated to those outside an enterprise. There are four major financial statements. However, some financial information is better provided, or can provided only, by means of financial reporting other than formal financial statements. Financial reporting may take various forms.