1. Explain the difference between financial and management accounting.
Financial accounting is used to meet the needs of external users and management accounting is used to meet the needs of internal users.
Financial accounting tends to give external users more dated and historical information supplied in annual financial reports, whereas management accounting provides more current, day-to-day or week-to-week information in order to meet the needs of internal users. This is because internal users, such as manager and employees within a business, desire to predict or anticipate future impacts, such as a budget deficit and account for them, or respond to changes in the environment and control performances.
Management accounting, uses financial information from the past, present, and anticipated future, to create an overall package of managerial information. On the contrary, financial accounting is used to prepare fiancial statements for the public to see or broad use. In many public sector organizations financial accounting is used to conform to an approved chart of accounts.
2. Discuss the need for accounting standards and explain how government accounting standards are set in Canada.
Having accounting standards is important because it sets a basis for what is acceptable as a credible report. It specifies how to create accountable and understandable clear presentations of transactions and other events in financial statements. In addition, this information will all its audience to use this information for deductive reasoning and future courses of action by providing financial statements that give a candid or honest representation of an organizations financial position.
In Canada, accounting standards are set under the Public...
... middle of paper ...
...urces controlled by an organization and they way in, which they are financed. It provides a snapshot or pinpoint in time on the worth of an organization and the results of the organization 's cash flows.
• Second, the function of the statement of operations is to cover the financial transaction of an organization over a period of time (monthly, quarterly, semi-annual, annual).
• Third, the function of the statement of net debt describes the changes in an organization 's net assets during the reporting period. In other words, it shows how much an organization has increased or decreased its net assets or net debt.
• Last, the function of a cash flow statement is to display changes in cash and cash equivalents and the flow of cash from where it goes and comes from. Overall, it provides, in a statement, the current financial viability of an organization 's operations.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- FINANCIAL SOURCES AND DOCUMENTS I would invite my friend to coffee and explain to him the situation if he wants to expand on financial sources available and the legal/financial documentation he has a duty to provide. Finance If he wants to expand as a sole trader or partnership, there are a variety of choices for his business as follow. Personal Savings: This is the cash my friend has ready. It is a quick and easy source of funding for him. He can choose if he wants to retain his savings or use them to purchase tools, cars, gears or other equipment his business 's requires.... [tags: Balance sheet, Finance, Financial statements, Loan]
1000 words (2.9 pages)
- Business requires the appropriation of funds and the analysis of how these funds are and should be used. The primary task of an accountant is to account for all transactions that were done over a period of time for a specific organization and to arrange these facts into financial statements that can be analyzed. The two main types of accounting, financial and managerial accounting are used to evaluate a businesses financial status through financial information that is specific to the audience. Although financial and managerial accounting use similar primary financial statements, the analysis of the documents and the information presented differs tremendously primarily because the financial a... [tags: accounting, financial, business]
1940 words (5.5 pages)
- 1) Explain the organization chart of finance function in a typical organization. What is the key function of each role/position. Explain the difference between the treasury and controller function. The organization chart of a finance department is determined by each company, it’s not depending on whether it is a minor, middle or huge sized organization. The organizational chart consists of a chief financial officer (CFO), a vice president, one or more accountants and a budget analyst. The CFO is the head of the finance department.... [tags: budget, management, investment]
1040 words (3 pages)
- Introduction: The principles of leadership and management are helps to understand the management style and make the effective decision. An effective decision helps to gain the success of an organization. Lots of way to manage and collect information/question for leadership and management which are describing in the below: 1.1 Explain the importance of defining the objectives, scope and success criteria of the decisions to be taken The objectives can lead a better understanding and take analyzing steps.... [tags: Management, Leadership, Decision making, Risk]
1893 words (5.4 pages)
- Introduction There are different budget theories that are applied in different industries and sectors of business. This is could be centered on the nature of the business, the type of transactions it performs and/or it could be based on the type of organizational leadership that is in place. The development of budgeting theories is fairly new and there is so much to still explore. For the purpose of this paper, I will be discussing a budget strategy that has been employed in the business world for many years but that government has just recently begun to explore and implement.... [tags: public managers, financial targets]
1533 words (4.4 pages)
- The researcher recommends that CHRC management monitor current operations to determine any issues that may affect morale in the future. Many organizations make changes that result in positive improvements and introduce innovation within the organization, but management forgets to monitor the operations to see if additional changes are warranted in the future. It is important to realize that people, policies, and plans change frequently, so organizations must be poised to make the right decisions that improve operations and productivity.... [tags: Business Management ]
883 words (2.5 pages)
- On Improving Human Resource Management of the Division With the issuance of DepED Order No. 57 s. 2014, the Division of Malaybalay City has implemented the Rationalization Program in terms of hiring qualified applicants for the newly created positions of the Rationalized Staffing Pattern. This phase of the Rationalization Program is most critical as it will spell the difference between success and failure of the program. Along this line, I was guided by the learning I have from Prof. Ginny L. Santiago in her Strategic Management of Human Capital in Public Education ( slide no.... [tags: Management, Leadership, Strategic management]
771 words (2.2 pages)
- From the management accounting viewpoint of business, the process of decision-making is the main aim of management accounting. The way of how accountants make their decisions has been studied and investigated widely. It is very helpful in management accounting to categorize decisions in to strategic and tactical and in to short run and long run decisions. The objective of management accounting is to make a good decision as the process of management decision-making is extremely subjective. A good decision is depends on the aims and purposes of management.... [tags: Business Management]
2521 words (7.2 pages)
- Out line: This assessment will look at the Principles and Functions of Management. Which mentions there is a difference between what a manager should do and what they actually do. According to many writers observation. Subsequently, I will comment by usage of my own knowledge of management theories and concepts. Further more, it is based on an experience and press stuffs. Due to main discussions, my assessment can be divided into following paragraph: I. Introduction In this order I will define: - What is a manager.... [tags: Business Management]
1623 words (4.6 pages)
- Management: Theory, Practice, application Successfully running a business or organization requires mastering the four primary functions of managing. The four functions of management are planning, organization, leading and controlling. I manage a flourishing online shoe store (www.myhoodjapan.com), and each of these functions is important to my stores success. This paper will define the functions, and will explain how each relates to my Organization. The first function of management is planning.... [tags: Business Management]
746 words (2.1 pages)