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Assignment on Difference between Management Accounting and Financial Accounting

   

Added on  2020-06-06

10 Pages2599 Words175 Views
FinancePolitical Science
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MANAGING FINANCIALRESOURCES
Assignment on Difference between Management Accounting and Financial Accounting_1

Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1P.1. Explain the difference between financial accounts and management accounts...................1P.2.Identify and explain the purpose of various financial statements in a profit and non-profitorganisations...............................................................................................................................2P.3. Identify the various groups of stakeholders and evaluate their different information needs.....................................................................................................................................................3P.2. Presenting the reports which determine the financial performance of business..................6
Assignment on Difference between Management Accounting and Financial Accounting_2

INTRODUCTIONIn this documentation, this assignment review about difference between managementaccounting and financial accounting effectively. Furthermore, this study also define explanationof the purpose of various financial statements in profit and non-profit organisation in the industryeffectively. Moreover, this study refer to identification of group of stakeholder and evaluation oftheir information needs in the industry properly. This study also analyse about several ratios ofStoreford organisation which shows its profitability and performance from the year 2015 to2016. This study also define about Stratford Yachts Ltd. Organisation's financial rationinterpretation and appropriate suggestions by which they can improve their performance in theindustry and increase the performance of the business as well.TASK 1P.1. Explain the difference between financial accounts and management accountsThe following are major differences between financial accounts and managementaccounts: Accounting is majorly process of recording, classifying and summarising in monetaryterms. In the accounts of an organisation, the business transaction and events of the business isrecorded in the business effectively.Management accountsFinancial accountsManagement accounting refer to thesystem in which appropriateinformation is to be managed toformulate policies, plans and strategyfor operating the business activitiesefficiently.Management accounting almost alwaysreports at a more detailed level likeprofitability of products, products line,customers etc. Management accounting does notfollow specified format in theFinancial accounts is an accountingprocess which has major focus onformulation of financial statements inthe organisation effectively andorganisation to furnish the financialdata to the interested parties in theorganisation effectively (Robb andWoodyard, 2011). Financial accounting reports on theresults of the whole business. Financial accounting has specified1
Assignment on Difference between Management Accounting and Financial Accounting_3

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