Critical Thinking In Accounting

Critical Thinking Questions

Marian L

University of Phoenix

HCS 577

Daniel Highland

September 20, 2008

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Critical Thinking Questions

Accounting and Finance Difference

Accounting has a primary function to provide and develop data measuring the performance and disclosure of the company or organization to assist managers, investors, tax authorities and decision makers. The individual in the role of accounting is called an accountant and he or she has the responsibility to prepare financial statements such as balance sheets, income statements, and cash flows. The different categories for accounting are financial, cost, internal and external accounting. Finance has a function of decision making. The financial manager or consultant is an individual who performs the decision making process and uses the information provided from the accountant to an organization about possible losses and profits. Finance has different ways in which businesses, individuals, and organizations allocate and raise monetary resources and this is also the usage for business purposes keeping the risks involved in mind.

Finance

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The different categories in which finance could be distributed are personal, public, and corporate finance.

Financial and Managerial Accounting Difference

Managerial accountant provides financial information that is used for making improved decisions regarding the future with the information for usage for analysis. Finance officer often performs these duties. Financial accounting is used for a company or organization to make financial decisions. Financial report provides factual or predict value of the company and where the company stands. Concentration for the financial accounting is for production including the reporting of profitability, liquidity, or solvency. These reports are prepared using scientific methods to arrive at certain values which are then used for decision making and may include sales budgeting, budget analysis and comparative analysis; merger or consolidation. In comparison, financial accounting is designed...