Accounting Essay Example | Topics and Well Written Essays - 250 words - 17

Accounting - Essay Example There may be mandatory precise formats and standards for statutory accounts. 3. Financial accounting must abide by predetermined accounting principles that are generally accepted whereas management accounting is basically an estimate, which emanates from the fact that exact figures required do not exist every time crucial decisions need to undertaken. 4. Financial accounting yields financial accounts usually prepared at the end of a trading period, mostly a year. On the other hand, management accounting yields accounts that are prepared at any time depending on the frequency at which the management requires such accounts. 2. Vertical analysis: every financial statement line item is expressed as a fraction of another. It helps managers to assess the proportion of an account with respect to other accounts over a particular period. 4. Operating budget: this enables managers to assess the variances of the budget from actual outcomes. It helps the management to plan business expenditure for a given period and maximize