| Management Accounting and Cost Accounting | | | | the following decisions: |
| Management or cost accounting is a management | | | | (a) Should the firm borrow from a bank or raise |
| information system which analysis data to provide | | | | funds by issuing shares? |
| information as a basis for managerial action. The | | | | (b) How much should be paid as a dividend? |
| concern of a management accountant is to | | | | (c) Should the firm spend money on new |
| present accounting information in the form most | | | | machinery? |
| helpful to management. | | | | (d) How much credit should be given to |
| Financial Accounting | | | | customers? |
| Financial accounting is mainly a method of | | | | (e) How much discount should be given to |
| reporting the results and financial position of a | | | | customers who pay early? |
| business. It is not primarily concerned with | | | | Auditing |
| providing information towards the more efficient | | | | The annual accounts of a company must |
| conduct of a business. This is particularly clear in | | | | generally be audited by a person independent of a |
| the context of the published accounts of limited | | | | company. In practice, this often means that the |
| companies. Accounting standards and public law | | | | members of the company appoint a firm of |
| prescribe that a company should produce | | | | registered auditors to investigate the financial |
| accounts to be presented to the shareholders. | | | | statements and report as to whether or not they |
| Financial Management | | | | show a true and fair view of the companies |
| The financial manager is responsible for raising | | | | results for the year and its financial position at the |
| finance and controlling financial resources. Including | | | | end of the year. |