The Characteristics Of Financial Accounting And Managerial Accounting
Financial Accounting is define as the art of recording, categorizing, summarizing and reporting a business transaction in a trivial fashion and in regards to money, the summary of this transactions are in the preparation of financial statement, which includes, income statement, balance sheets and cash flow statement, that sum up and interpret the operations performance of the company’s over a specific time period (Financial Accounting, n,d).
Whilst Managerial accounting is define as the method of classifying, computing, exploring, understanding as well as relating information for the quest of an organization's goals where financial information is prepared to assist management in carrying out its functions more efficiently s (What is 'Managerial Accounting', n,d). …show more content…
One of the characteristic of financial accounting is that, it considered only monetary transactions i.e. any transactions that’s not mention in monetary terms doesn’t actually have a place in financial accounting. Secondly, it provides a summary of financial transactions instead of a detailed report. Thirdly, financial accounting provides uniformity in both recording and reporting financial information (Financial Accounting and its characteristic features,