Management Accounting and Information

Question 1

Management Accounting

Answer 1

Internal (prepared for management), optional, information may be approximate, more important to be timely than accurate, can be produced for any segment of the organisation, no prescribed rules, can be for periods in the past, present and future, produced when required

Question 2

Financial Accounting

Answer 2

External (prepared for various stakeholders), required by law, accurate (audited to be true and fair), more important to be accurate than timely, deals with whole company, has to comply with IFRS, historic, must be produced annually