Understanding the Distinction between Managerial and Financial Accounting
QUESTION Unlike managerial accounting, financial accounting is governed by rules set out by the Financial Accounting Standards Board (FASB). Publicly traded companies are governed by the US Securities and Exchange Commission (SEC), in the form of the generally accepted accounting principles (GAAP). Why do you believe that managerial accounting is exempt from applying these rules and principles? Give specific examples to support your explanations. In […]
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