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Management Accounting Def

Management accounting provides accurate and timely financial reports for internal managers to make short-term decisions. Unlike financial accounting which produces annual reports, management accounting generates monthly or weekly reports showing cash, sales, orders, payables, receivables, debts, inventory, and trends. It helps managers monitor the business and ensure its continued success.

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68 views1 page

Management Accounting Def

Management accounting provides accurate and timely financial reports for internal managers to make short-term decisions. Unlike financial accounting which produces annual reports, management accounting generates monthly or weekly reports showing cash, sales, orders, payables, receivables, debts, inventory, and trends. It helps managers monitor the business and ensure its continued success.

Uploaded by

elgen_ga
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Management Accounting The process of preparing management reports and accounts that provide accurate and timely financial

l and statistical information required by managers to make day-to-day and short-term decisions. Unlike financial accounting, which produces annual reports mainly for external stakeholders, management accounting generates monthly or weekly reports for an organization's internal audiences such as department managers and the chief executive officer. These reports typically show the amount of available cash, sales revenue generated, amount of orders in hand, state of accounts payable and accounts receivable, outstanding debts, raw material and inventory, and may also include trend charts, variance analysis, and other statistics. Also called managerial accounting.
Accounting- Practice and body of knowledge concerned primarily with (1) methods for recording transactions, (2) keeping financial records, (3) performing internal audits, (4) reporting and analyzing financial information to the management, and (5) advising on taxation matters. It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity. Accounting provides information on the (1) resources available to a firm, (2) the means employed to finance those resources, and (3) the results achieved through their use.

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