A) Is there any difference in the focus of information determined by the end user of the...

Question:

A) Is there any difference in the focus of information determined by the end user of the reporting?

B) Is there any difference in flexibility relative to the GAAP Principles between the two types of accounting?

Accounting Types

In the accounting profession, there are many different fields of study. Some of them include:

  1. Financial accounting.
  2. Government accounting
  3. Forensic accounting
  4. Management accounting
  5. Tax accounting, and
  6. Internal auditing.

Answer and Explanation:

A) Is there any difference in the focus of information determined by the end-user of the reporting?

Yes, there is a difference in the focus of information determined by the end-user. For example, financial accounting focuses on the external reporting aspects of the company, while tax accounting focuses on the tax liability of the company.

B) Is there any difference in flexibility relative to the GAAP Principles between the two types of accounting?

Yes. For example, in Financial Accounting, GAAP must always be followed, no matter what. However, in other accounting methods, such as Managerial Accounting, this is not the case; rather the information is produced for management to make effective decisions.


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Accounting Disciplines: Descriptions and Definitions

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