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Financial Accounting is an indispensable category of accounting that supervises the economic activities of a business. All the transactions are recorded, compiled, and displayed in the formation of commercial reports like income statement, cash flow statement, or balance sheet. Financial statements are composed to determine the financial position of a corporation to an organization’s external constituents whose concern lies in the well-being of the firm like, investors, lenders, buyers, and suppliers.
Managerial Accounting is also known as Management accounting. It is a department of accounting that includes identification, quantification, interpretation, and review of accounting information to help supervisors make significant judgments to proficiently handle operations of a company. Managerial accounting accumulates data of, financial accounting, and cost accounting. The major purpose of Managerial Accounting is to give the management important information that helps them in planning, organizing, controlling, analysis of performance, and making decisions.
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