Financial Accounting Vs Manangement Accounting Flashcards
(12 cards)
Who are the external users of financial accounting?
External users mostly.
What is the primary report format for financial accounting?
Annual Financial Statements.
Who are the users of management accounting?
Internal users only.
What does management accounting depend on?
Depends on needs.
What are general purpose reports?
Broad overview of performance of entity as a whole.
What are specific purpose reports?
Sufficient detail to assist with operational decisions.
How often are general purpose reports generated?
At least annually.
How often are specific purpose reports generated?
As need arises.
What type of information do general purpose reports use?
Uses historical information to predict future performance.
What type of information do specific purpose reports use?
Uses modelling and other tools to predict future performance.
What type of information do general purpose reports contain?
Only quantitative financial information.
What type of information do specific purpose reports contain?
Contain both financial and non-financial information.
