Management Accounting

Accounting is concerned with providing both financial & non-financial information that will help decision makers to make good decisions.
It is the language that communicates information to people who have an interest in an organization. Broadly these interested parties(stakeholders) could be divided in to two.

1. Internal Parties
   Eg : Managers, Board of Directors
2. External Parties
   Eg : Government, Tax authorities

Hence it is possible to distinguish between two branches of accounting.

• Management accounting is concerned with providing information to internal parties like mangers.
• Financial accounting is concerned with providing information to external parties.

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