Types Of Accounting Flashcards
(4 cards)
1
Q
What is financial accounting?
A
Financial accounting involves the preparation of formal financial statements for use by external users.
2
Q
Who are the external users in financial accounting?
A
Persons/entities that are not directly involved with the entity.
3
Q
What is management accounting?
A
Management accounting involves the preparation of financial reports for different departments of an entity.
4
Q
Who are the internal users in management accounting?
A
Persons employed by the entity and require specific info to perform their duties
