Skip to main content

Distinction between Financial accounting and Cost and Management accounting

S.No

Financial accounting

Cost and Management accounting

1

It is primarily for external purpose

It is primarily for internal purpose

2

It provides information about the financial performance and financial position of the business

It provides information of ascertainment of cost to control cost and for decision making about the cost.

3

It classified records, presents and interprets transaction in terms of money

It classifies, records, presents and interprets in a significant manner the material, labour and overheads cost

4

It shows the profit or loss of the organization

It provides the details of cost and profit of each product, process etc

5

Financial statements are prepared for a definite period, usually a year

Its reports and statements are prepared as and when required.

6

A set format is used for presenting financial information

There are not any set formats for presenting cost information.

Comments

  1. calvynraboin4 March 2022 at 14:22

    Casino Games Near You | TheJtm Hub
    Find the BEST and NEWEST CASINO GAMES & EASONS in Las Vegas at 춘천 출장안마 The JTG Hub! and enjoy 전라북도 출장안마 gaming 광양 출장샵 and the hottest slot machines 전주 출장샵 and table games 순천 출장샵 at the best

    ReplyDelete

Post a Comment

Popular posts from this blog

Distinction between Journal and Ledger

 S.No Journal Ledger 1 Journal is the book of first entry ( original entry) Ledger is the book of second entry 2 Journal is the book for chronological record Ledger is the book for analytical record 3 The unit of classification of data within Journal is the transaction The unit of classification of data within Ledger is the account 4 The process of recording in Journal is called Journalizing or Journalization. The process of recording in Ledger is called posting  5 Journal as a book of source entry ordinarily has greater weight as legal evidence than the Ledger. Q. What is meant by Posting The process of recording information from journal to ledger is called posting.
Post a Comment
Read more

Distinction between Book-keeping and Accounting

S.No Book-keeping Accounting 1 It is the recording phase of an accounting system It is the summarizing phase of an accounting system 2 It s the basis of accounting It s the basis for business language 3 Persons responsible for bookkeeping are called book-keeper Persons responsible for accounting are called accountants 4 It does not require any special skill or knowledge It requires special skill and knowledge 5 Personal judgments of the bookkeeper is not required Personal judgments of the accountant is essential 6 Financial statements are not prepared from bookkeeping records Financial statements are prepared from accounting records. 7 It does not give the complete picture of the financial condition of the business unit It gives the complete e...
Post a Comment
Read more

Define the term Balance, Balancing Debit balance and Credit Balance

 The difference between the totals of two sides of an account is its balance. The balance is written of the lesser side to make the two sides equal.  For example: Total of Dr. Side Rs.20000 Total of Cr. Side Rs.15000 Balance Rs.5000 1. Balancing  The process of equalizing the two sides of an account is known as balancing. 2. Debit balance While finding the balance if total of debit side is greater than that of credit side, the difference is named as debit balance.  For example: Total of Dr. Side of an account Rs.80000 Total of Cr. Side of an account Rs.70000 Balance (Debit balance) Rs.10000 3. Credit balance While finding the balance if total of credit side is greater than that of debit side, the difference is named as credit balance. For example: Total of Dr. Side of an account Rs.35000 Total of Cr. Side of an account Rs.50000 Balance (Credit Balance) Rs.15000
Post a Comment
Read more