Normally company keeps two types of records in the shape of Financial Accounting and Managerial accounting-which normally do not match.
A single company always must have single financial position; so how is it possible to have two different accounting records.
Lastly, different accounting records means the element of frauds in the company.
Financial statement/ position explanation.
Accounting records are different for Managers and Public Financial Statement.
Reasons for differences in Financial Accounting and Managerial Accounting.
Problems that may occur in accounting.
Unintentional errors.
Problems with receivables.
Intentional Errors.
Understate liabilities.
Overstated assets.