Definition:
- Accounting system includes
- Accounting entity: The organization for which financial data are to be collected.
Financial Accounting vs Managerial Accounting:
| FA | MA |
|---|
| For | Outsider, public | Internal Manager |
| To be used | External and internal | Internal only |
| Concern | Corporation’s past transactions | Strategic and confidential information |
| Format | IAS, GAAP,… | No format or internal’s format |
| Legally required | Yes and audited | No |
| When | End of a period | whenever necessary to managers |
| How many accountant needed | At least 1 | not necessary or depends on managers |
| Requirement | Accurate | Relevant |