Accounting Theory Question Answer 2022

Running head: ACCOUNTING THEORY
ACCOUNTING THEORY
Name of the Student
Name of the University
Author Notes

ACCOUNTING1
Answer to question 1
Financial and management accounting are two different aspect of accounting
therefore there are plenty of differences present between financial management accounting.
The most important variance between financial and management is given below.
Management accounting Financial accounting
 Management accounting looks at
various way to solve management
accounting problems.
 Management accounting is primarily
used to create strategic plans taking
managers with creating budgets and
estimating upcoming income and
expenses (Weetman, 2019).
 In management accounting, reports
are more frequent and managers
generally reports it to the authority
on day to day basis. Reports of
management accounting are used
internally.
 There are no legal standards or
requirements present in management
accounting which can be used by
business if they wish.
 Financial accounting looks at the
company as a whole and solves the
problem of accounting.
 Financial accounting analyses the
company based on reports and
statements and provides solutions to
the problems.
 Financial accounting focus on
performance for a very specific time
frame and generally does not
conducted on day to basis. The
reports of financial accounting is
used and distributed outside of the
organisation.
 The financial statements produced
using financial accounting are
required to be audited by
independent CPA firm (Schroeder,