Final Essay: Accounting 206
Final Essay: Managerial Accounting versus Financial Accounting
Instructor Lisa Foley
May 17, 2010
In this essay I will discuss what management accounting is and what the sources of data are. I will also divulge the differences in these accounting methods. In my learning of accounting principles, I have learned that there is a difference between financial accounting and managerial accounting. The main difference between the two is that managerial mainly focuses on the business itself and is really a significant role in the business being able to withstand the market and current economy. This type of accounting is mostly hands on and financial accounting focuses more on the reviewing of the financial statements to an external source (not a part of the business or company.) A company that provides stocks and bonds and is public business (where anyone can see how they are doing) such as Chase bank, and JP Morgan and this keeps a company honest in its work.
Making a good ethical decisions in business require facts and truth. Not subjectivity and half-truths. The difference between these two different types of accounting is that, when doing managerial accounting its main emphasis is on the future predictions of the company.
Managers direct people to do certain tasks, such as taking out the garbage, or doing the dishes, the job is being delegated to the employees and they fulfill the requirements and get paid. Sometimes depending on the job and position you are in with the company, the benefits and or consequences of failing at a task depend greatly on the profession. For the military, the consequences of failing a mission could mean life or death. The decision is based on a moment's notice and is taught early on that the first...