Compare And Contrast Financial Accounting Vs Managerial Accounting

Good Essays
Tiffany Watson
Applied Managerial Accounting
Colorado Technical University
Dr. Margareta Moczynski

Part 1 – Memo to New Assistant

Memorandum
To: Susan Thompson
Date: October 6, 2017
Re: Financial Accounting vs. Managerial Accounting

Susan,
Welcome to Eddison Electronic Company. I am very happy to have you on the team. I look forward to mentoring you and educating you in managerial accounting. I am glad to see that you have a strong background in financial accounting and I am sure that will aid you greatly as you begin your new endeavor into managerial accounting. The two disciplines are very closely related and have a few similarities and a few differences
Financial accounting pulls financial information into standardized reports like
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The importance of the balance sheet is to confirm that the ledger accounts are in balance. This report can be modified and manipulated to focus can be assets, inventory, or equipment to show numerous parts of the business (Analyzing for Planning and Costs).
Income statement measures a company’s financial performance over a period of time. It shows the company’s revenues and expenses over a specific period of time, such as a month or a year come statement will contain the contribution margin, which reflects the performance of the manufacturing operations (Analyzing for Planning and Costs).
Statement of cash flows shows the significant cash inflows (receipts) and cash outflows (payments) of a company for a period and has three primary sections operational activities, investing activities, and financing activities (Analyzing for Planning and
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(n.d.). Retrieved from My Unique Student Experience (M.U.S.E.): https://class.ctuonline.edu/_layouts/MUSEViewer/MUSE.aspx?mid=9099102
Basu, C. (n.d.). Four Basic Types of Financial Ratios Used to Measure a Company's Performance. Retrieved from Chron: http://smallbusiness.chron.com/four-basic-types-financial-ratios-used-measure-companys-performance-25299.html
Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2014). Managerial Accounting (fifteenth ed.). New York, NY: McGraw Hill Education. Retrieved 2017, from https://online.vitalsource.com/books/1259872947/epubcfi/6/2[;vnd.vst.idref=body001]!/4/4/2@0:0
Keim, E. (2015, April 08). Live Chat Session #2 for FINC400-X-1502A-03 : Financial Management. FINC400-X_3_214_1. CTU Virtual Campus. Retrieved from https://campus.ctuonline.edu
Times-Interest-Earned Ratio. (n.d.). Retrieved from Boundless: https://www.boundless.com/finance/textbooks/boundless-finance-textbook/analyzing-financial-statements-3/debt-management-ratios-42/times-interest-earned-ratio-217-7972/
Vertical Analysis. (n.d.). Retrieved from Accounting for Management:

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