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Explain how decisions are improved

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Discussion: Shared Practice: Financial vs. Managerial Accounting

Financial accounting and managerial accounting are different. Namely, financial accounting refers to reports that are prepared for review by individuals outside the organization, like investors and creditors. Managerial accounting refers to reports that are generated for internal use by organizational decision makers.

To prepare for this Discussion, "Shared Practice: Financial vs. Managerial Accounting," take a moment to think about the implications of these two kinds of accounting.

  • Describe one or two examples of decisions that could be made using the information provided by financial accounting. Provide specific examples and explain how decisions are improved when the information is used accurately. Then, explain the risks of not having the information when making such decisions. Your examples should be real world, specific situations from your experience, observations, and research.
  • Describe one or two examples of decisions that could be made using the information provided by managerial accounting. Provide specific examples and explain how decisions are improved when the information is used accurately. Then, explain the risks of not having the information when making such decisions. Your examples should be real world, specific situations from your experience, observations, and research.

Reference no: EM131267219

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