Financial Accounting refers to the process of tracking the company's financial transactions in order to prepare financial statements. The main users of financial statements are external users like shareholders, customers, suppliers and banks for loan assessment purposes.
Usually, we will need to learn the basics of financial accounting such as
- Accounting Principles
- Booking Keeping Basics
- Accounting for Fixed Assets
- Bank Reconciliation
- Inventory Accounting
- Financial Ratios
- Preparation of Financial Statements
Managerial Accounting refers to the preparation of financial information NOT for external users but for internal users like managers for decision making process. Thus, this will implied that information used in managerial accounting are sensitive information and cannot be disclosed to the public or external parties. Some of the sensitive information consist of cost structure of the company.
Usually, we will need to learn the basics of managerial accounting such as
- Cost Accounting
- Activity Based Costing
- Contribution Margin
- Process Vs Period Costing
- Job Costing
- Variance Analysis
- Horizontal and vertical Analysis
- Statement of Cost manufactured
"Felix explains the concept well. He focuses on explaination rather than getting the answer. Thank you for the help in getting the High Distinction for my Financial Accounting Module"
Chua Guat May, 2016,
Bachelor of Business Management, Swinburne University
Financial Information for Decision Making