Managerial and Financial Accounting Paper
University of Phoenix
Principles of Accounting
ACC 300
M. Milena Loubeau
June 10, 2009
Managerial and Financial Accounting Paper
Within most companies management must identify the reporting methods for accounting most suited for their organization. The two most commonly used accounting reporting are managerial accounting and financial accounting. The purpose of these types of accounting reporting within a company is often used for planning, directing, motivating, and controlling performance evaluation. Managerial and financial accounting reporting should be prepared with the generally accepted accounting principles.(Accountingformanagement, 2008).In this paper, team A will detail the difference between managerial and financial accounting, identify the information gathered from managerial and financial accounting, identify the users of managerial and financial accounting and lastly, identify what kind of business decisions would they make with this information.
Managerial accounting is often used by companies to measure, analyze, interpret, and communicate information internally. Managerial accounting uses both historical data and estimated data in order to develop business strategies and also base decisions on the outcomes of current and future performances. Therefore, the data provide from managerial accounting reporting is both objective and subjective. Management uses subjective data to plot the company’s course in areas like acquisitions and development. Managerial accounting depends a great deal on having accurate cash flow reporting. Overall, managerial accounting assists managers and company leaders with establishing policies and making informed decisions. Certification has recently become available for individuals wanting to be certified in managerial accounting, the certification is called (CMA) or certified managerial accountant.
Financial accounting is a method of accounting reporting used to...