Emphasised on these characteristics of modern day accounting, eperts have intended to categorise the concept in two parts, i financial accounting and management accounting (Tyagi & Tyagi, 2003). Fnancial 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. A stated by Albrecht & Et. 2007), fnancial accounting is particularly “concerned with reporting financial information to interested external parties”. I this regard, te accounting process emphasises on maintaining records of the financial further concentrates on the analysis of the obtained information with the aim to assist the management in decision-making.
Te accounting process also tends to identify various strengths as well as weaknesses possessed by the business units in financial terms. Trough the implication of the accounting process, acountants concentrate on communicating the information with the assistance of variou9733436912s financial statements, sch as balance sheets, csh-flow statements, anual income statements and others (Jagels & Ralston, 2006). Smilarly, te concept of management accounting is referred to as the process to inform the a business regarding the financial status of the company.
I a broader perspective, te 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. Ntably, te decision can be related to the investment of working capital, fture expansion of the product line or market area, mrgers and acquisitions or even solvency (Albrecht & Et. Acording to various professionals, mnagement accounting is also referred to be a further extension of financial accounting it on the aspects of cost accounting as well.
I 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. Wth a broader perspective, te concept of management accounting also focuses on the various facets of cost accounting (Ansari & Et. Oe 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. I not only on accounting costs, ...
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