Accounting - Page #11

What is the difference between Managerial Accounting and Financial accounting?

What is the difference between Managerial Accounting and Financial accounting?

Managerial accounting refers to use of accounting information by managers in order to help them in making decisions that will be of an advantage to the organization.
Financial accounting refers to financial reports indicating an organizations performance from external users like investors and creditors.

The value chain analysis refers to the sequence in which customers are included in providing strength to the products of an organization. The value chain consists of the following elements;
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Ethics and Firm's Goals & Cash Flow
1. Can goals like avoiding unethical or illegal behavior be in conflict with the goal of the firm? How does this complicate the agency problem? Fully explain your reasoning in at least 200 words.
Goals like avoiding unethical or illegal behavior cannot be in conflict with the goal of the firm. The reason is that an organization that operates ethically has many advantages including avoiding fines and litigation (Ross, Westerfield & Jordan, 2006). An organization that operates ethically creates a competitive environment and has the ability to protect or increase capital value. The disadvantages that come with an organization operating in unethical behavior include lower productivity of the firm’s output. In addition, unethical behavior results to employment of many unskilled employees because of corruption practices. Lower financial performances are a result of unethical behaviors that may occur in an organization.
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Advanced Financial Accounting Theory and Analysis: Forward Exchange Contracts
1. Describe a fair value hedge and discuss how to account for forward exchange contracts that are entered into for fair value hedges
There is a great exposure to change in fair value of a recognized firm’s commitment resulting to a certain risk and could affect the profit and loss in the operations of the firm in a fair value hedge (Deloitte, 2007). Fair value also refer to the exposure to changes in value of unrecognized firm participating in certain contract or an identified portion of liability that is exposed to a particular risk and may contribute to the change in profit and loss in the firm’s operations. In this type of hedges, there are various income generator ought to recognize the financial gains on the hedging instrument.
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Managerial Accounting
After the end of this course, I have managed to achieve a lot about the information in all the modules. At the start of the course, I had numerous objectives that I targeted to achieve by the end of this module. One of the objectives was to learn how to identify the various global trends in managerial accounting. The second objective was to learn how to demonstrate knowledge of transfer pricing strategies. Through the course, I have managed to obtain the following knowledge and experience in relation to managerial accounting.
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