Accounting
Theory and Problems of Managerial Accounting
Financial accounting is concerned mainly with the historical aspects of external reporting, that is, providing fmanc :ial information to outside parties such as investors, creditors, and governments To protect those 01 itside parties from being misled, financial accounting is governed by what are called -^- ---11.. ^^^^_d C;eneruLiy uLc.epied accounting principles (GAAP). Management accounting, on the other hand, is concerned primarily with providing information to internal managers who are charged with planning and controlling the operations of the firm and making a variety of management decisions Because of its internal use, management accounting is not subject to GAAP More specifically, the differences between financia and management accounting are summarized.
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