Emphasised on these characteristics of modern day accounting, experts have intended to categorise the concept in two parts, i. financial accounting and management accounting (Tyagi & Tyagi, 2003).Financial accounting is considered to be the pathway of gathering financial information and analysing the effects of such information on the managerial decisions of the business unit. As stated by Albrecht & Et. (2007), financial accounting is particularly “concerned with reporting financial information to interested external parties”.In this regard, the accounting process emphasises on maintaining records of the financial transactions. It further concentrates on the analysis of the obtained information with the aim to assist the management in decision-making. The accounting process also tends to identify various strengths as well as weaknesses possessed by the business units in financial terms. Through the implication of the accounting process, accountants concentrate on communicating the information with the assistance of variou9733436912s financial statements, such as balance sheets, cash-flow statements, annual income statements and others (Jagels & Ralston, 2006).Similarly, the concept of management accounting is referred to as the process to inform the management of a business regarding the financial status of the company. In a broader perspective, the accounting process intends to analyse the financial information strategically with the aim to relate the financial strengths along with weaknesses of the company with its strategic decisions. Notably, the decision can be related to the investment of working capital, future expansion of the product line or market area, mergers and acquisitions or even solvency (Albrecht & Et.According to various professionals, management accounting is also referred to be a further extension of financial accounting as it concentrates on the aspects of cost accounting as well. It is often termed to be a conceptual approach to accounting which assists the management to enhance the efficiency and effectivity of the business to a large extent. With a broader perspective, the concept of management accounting also focuses on the various facets of cost accounting (Ansari & Et.One of the major attributes observable in cost accounting is the consideration provided to both the cost of products and the services used in the organisational operations. It not only focuses on accounting the costs,
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Institute of Cost and Works Accountants of India, No Date. Management Accounting. Cost and Management Accounting.
Jagels, M. G. & Ralston, C. E., 2006. Hospitality Management Accounting. John Wiley and Sons.
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