Reports such as balance sheets, income statements, and statements of cash flow are common to both management accounting and financial accounting . In short, most companies adhere to, or only mildly depart from, GAAP for their basic internal financial statements. Why? Because accrual accounting provides a uniform way to measure an organization’s financial performance for both internal and external purpose. But management accounting is more wide-ranging than financial accounting. It embraces more extensively such topic as the development
And implementation of strategies and policies, budgeting, special studies and forecasts, influence on employee behavior, and nonfinancial as well as financial information