What is the difference between managerial and financial accounting? W

QUESTION

What is the difference between managerial and financial accounting?

What will be an ideal response?

ANSWER

Answer: Whereas managerial accounting is concerned with preparing accounting information and analyses for managers and other decision makers inside an organization, financial accounting is concerned with preparing such information and analyses primarily for people outside the organization.
Explanation: Managerial accounting can be thought of as accounting information and analyses for those within the organization, and financial accounting can be thought of as such processes for those outside the organization (such as other companies, investors, and the government).