07-09-2009, 05:48 PM
<b>Financial Accounting and Management Accounting</b>
Users of accounting information may be categorized as external users or internal users. This distinction allows classifying accounting into two fieldsâfinancial accounting and management accounting.
Financial accounting focuses on information for people outside the firm. Creditors and outside investors, for example, are not part of the day-to-day management of the company. Government agencies and the general public are external users of a firm's accounting information
Management accounting focuses on information for internal decision makers, such as top executives, department heads, college deans, and hospital administrators, telecommunication managers, ICT operators.
Users of accounting information may be categorized as external users or internal users. This distinction allows classifying accounting into two fieldsâfinancial accounting and management accounting.
Financial accounting focuses on information for people outside the firm. Creditors and outside investors, for example, are not part of the day-to-day management of the company. Government agencies and the general public are external users of a firm's accounting information
Management accounting focuses on information for internal decision makers, such as top executives, department heads, college deans, and hospital administrators, telecommunication managers, ICT operators.
