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Need an argumentative essay on Management Accounting and Financial Accounting: two branches of the accounting. Needs to be 3 pages. Please no plagiarism.

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These transactions enable the concern to find out profit and loss for a particular period and financial position of the concern also. On the other hand, management accounting uses financial accounts and taps other sources of information too. The accounts are used in such a way that they are helpful to the management in planning and forecasting various policies. Thus, financial accounting has significant influence on management accounting.

A non profit organization or Charitable organizations also known as not-for-profit were legally organized by the object to support or engage in activities(clubs), service to public or private(hospitals) make the best person for our nation by giving teaching (schools) without any commercial or monetary profit. But in many countries non profit organizations run as charities but not for only charitable organizations. They do not prepare trading and profit and loss account. But they want to know (i) whether their current incomes are sufficient to meet current expenses, and (ii) what their financial

Position is at the end of each period. Therefore, they prepared an account each year called income and expenditure account, setting out all incomes (or revenue receipts) on the right hand side and all revenue expenses on the left hand side. The comparison of two sides shows whether o not current expenses are being met out of current income.

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1. Anthony, Robert N., “Managements accounting”

Name 2

But on the other hand the organizations started for the purpose of making profits to them. In the profit making organizations firms prepare accounts to understand their day to day transactions dealings etc., and by the understanding of accounting positions the management wants to take actions for the smooth running and improving the profit of the business. The principles of preparing the profit and non profit accounts are exactly the same as each other. By the preparation of the management accounting the company can increases the efficiency of business operations, the management is able to proper planning with the help of accounting information like the technique of budgeting is helpful for various activities, the systems of budgetary control and standard costing enables the measurement of performance, the thrust of management techniques leads them to control cost of production and increase the efficiency of each and every individual in the organization leads of decrease of cost and increase of profitability, by the control devices in managements accounting enable the reduction of prices and improves the quality and number of products leads to the good product service to the customers and last it leads to the effective Management control in planning, coordinating and controlling g activities of the concern. The scopes of management accounting system i.e., financial accounting, cost accounting, financial management, budgeting and forecasting , inventory control, reporting to management, interpretation of data, control procedures and methods, internal audit, tax accounting, office services etc are stands a very important role.