Question

Financial accounting is the process of identifying, measuring, analyzing, and communicating financial information needed by management to plan, evaluate, and control a company's operations.True/false

Answer 1

Answer:

False

Explanation:

Managerial accounting  is the type of accounting that classifies, analyze, interpret and communicate accounting information of an organisation  to the managers of that particular organisation for pursuit and achievement of the organisation's goal. It is mostly for internal use by the managers of the firm to improve the firm's activities directed towards achieving the goal of the organisation.  On the other hands, financial accounting is the process of recording, classifying, analyzing, measuring, interpreting and communicating financial data of an organisation to enable users of accounting information makes decision. The users of accounting information include the potential investors, shareholders, government, suppliers, customers etc. Therefore financial accounting is for external use   while managerial accounting is for internal use of the business