StudentShare solutions
Triangle menu


Nobody downloaded yet

Extract of sample

However, this paper analyzes only two branches of accounting namely financial accounting and management accounting. This report aims at analyzing these two branches in details by looking at each branch separately in regard to accounting. The paper also looks at the differences between the two branches of accounting basing on various factors. Financial accounting It is a branch of accounting that deals with finding and giving information on the profitability of a business. It aims at compiling financial statements of an organization and preparing them so that they show the financial position of a business. This branch is concerned with preparing these statements at the end of every financial year by analyzing revenues, assets, liabilities and other aspects of accounting (Drury 2007). It is the branch that handles the process of accounting and recording in the organization. It determines whether the business has made losses of profits in a certain financial year by preparing relevant financial statements. Managers use financial statements to determine the economic solidness of the company. This branch determines the financial position of an organization at a particular time for the purpose of other people like creditors, managers and shareholders of the business. Financial accounting entails providing information to external parties like suppliers and creditors to enable them make decisions (Ahmed 2008). Financial accounting provides managers with information on the company’s financial position, and this helps him to determine the performance of the company finances. With this information, the manager will be in a position to make financial decisions about the company like how to improve on the performance and to devise relevant strategies to improve on the performance of the company. A review of the balance sheet of the company helps managers to determine the cash levels of the company hence making the right decisions. The profitability trends obtained from the financial accounts is a critical tool for managerial decisions as it helps the managers to engage in those transactions which tally with the profit potential of the company (Ahmed 2008). Professionals under this branch have to get credibility from various authorities to ensure that they are fit to prepare financial statements and provide information to the relevant parties. For instance, in the United States of America the body that provides such credibility is the American Institute of Certified Public accountants. This body ensures that professionals who carry out the objectives of financial accounting meet the requirements and that they prepare the statements according to the framework (Gupta 2008). Therefore, financial accounting helps managers to determine whether the financial accounts have been prepared in accordance to the set regulations and to make decisions concerning payment of taxes. Financial accounting reduces the common problem of principal agent in an organization. It reduces agency problem by measuring the performance of agents and reporting to concerned parties so that this problem is reduced. It deals with summarizing data from the financial statements that it prepares. It then publishes these statements in annual reports for ...Show more


Name…………………………………………………………………………….xxxxx Institution………………………………………………………………………….xxxx Course…………………………………………………………………………….xxxx Professor…………………………………………………………………………xxxx @2012 Cost and management accounting Accounting has three major branches which include cost accounting, management accounting and financial accounting…
Author : dbartoletti
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Cost Accounting and Management Decisions
Identifying the cost accounting system of the organisation, the study will further attempt to discuss the advantages of activity-based cost systems. Correspondingly, the study will also intend to discuss on the sales forecast of company sales along with discussing upon the environment change influences on budgetary planning and forecasting methods in Alcoa.
5 pages (1250 words) Essay
An analysis of how 'management via accounting' can be applied to keep fuel costs as low as possible at a low-cost airline, w
Faced with high fuel cost volatility, scarcity in fuel supply, and high complication in future forecasting demand, many passenger airplanes are looking forward to capture financial savings and good organizations towards fuel procurement, cost risk hedging, and fuel management via accounting.
3 pages (750 words) Essay
The Classic Products Limited (CPL) has been following marginal costing system for accounting its cost information and related decision making. The concept of marginal costing is highly relevant for manufacturing concerns where huge amount has been spent for fixed capital investment.
8 pages (2000 words) Essay
Financial and Management Accounting Essay
The contributed article claims that the environmental services of all of Canada's forests can be quantified monetarily and this amounts to a total of ninety three billion dollars. The said services are in the form of climate being regulated which in turn captures and keeps carbon, filters the water and treats the wastes, maintains biodiversity and provides pest control which is undertaken by the birds, among others.
11 pages (2750 words) Essay
Cost Accounting Essay
Even measuring the data and allocating the usage to each department incur costs as lots and lots of devices are to be installed for measuring this data and computerized requisition. The purpose of I.T department is to assist the various other departments in the firm about computer related issues.
12 pages (3000 words) Essay
Management Accounting - Organizations
Financial accounting records are mainly therefore for external purposes whereas managerial accounting records are maintained for the internal purpose- the controlling of costs, budgets, schedules during the given financial year. "In the last few years the question has arisen as to how far the business-oriented concepts of management accounting and control could be employed for non-profit organisations (especially in the field of public management).
4 pages (1000 words) Essay
Cost and Management Accounting
ded carbonates through effective sustainability process designs.. The Group has made significant investment across its procurement, production and quality control, customer management, category marketing and distribution functions with the aim of being able to deliver a high quality product at any time or place of customer interest.
7 pages (1750 words) Essay
Management accounting
They play different roles in the process of satisfying the needs of the stakeholders of a particular organization. This essay attempts to provide a clear understanding regarding the differences that exist between the management
4 pages (1000 words) Essay
What's the difference between Financial Accounting and Management Accounting
While the notion of ‘accounting’ has widespread importance, it’s important to note that there are different forms of accounting. This essay examines the differences between management accounting and financial accounting. There are a number
2 pages (500 words) Essay
Management Accounting
In the organizational context accounting is instrumental for the companies to maintain financial stability. The whole process of accounting is being handled by the accountants of the companies.
8 pages (2000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us