Distinction between Management Accounting and Financial Accouting

Distinction between Management Accounting and Financial Accounting

 

Management Accounting	Financial Accounting
Concerned with accounting information useful for management.	Concerned with recording, classifying and summarizing the transactions.
Provides information for decision making.	Provides information for ascertaining profitability and financial position.
Futuristic in nature	Historical in nature
Useful for management	Useful for management as well as third parties
Depends on financial and cost accounting	Independent
Can be expressed in monetary and physical units	Expressed in monetary units
Not restricted to any specific accounting system	Follows uniform rules
Emphasis is on planning and controlling	Emphasis is on profit/loss determination