Give Feedback and ask a question: How does managerial accounting differ from financial accounting? Managerial accounting focuses on the internal aspects of a business, and financial accounting focuses on the external elements. Financial Accounting: Guiding standard: GAAP - Generally accepted accounting principles (FASB Accounting Standards Codification) Purpose: Demonstrate compliance with reporting Users of the information: Regulators, investors, creditors, management Types of reports: Annual statements (10-Ks) and quarterly statements (10-Qs) for regulators, audited financial statements fopr investors and creditors, periodic financisl reports for management Reporting periods: Recently concluded quarter or year, often com[ared to previous quarters or years Focus: Financial results of past performance Management Accounting: Guiding standard: Company management's prescribed format Porpose: Help management make informed business decisions Users of the information: Internal mmaangement Types of reports: Financial and operating budgets, reports on variances from standards, capital bugeting/ resource investment Reporting periods: Future periods (next year's budget, 10-year capital projection, etc.) Focus: Financial projections of future performance