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Financial Accounting Financial accounting involves the preparation of a business's financial statements, mainly for users outside the business. These reports are used by owners, potential owners of a business, and by people who have loaned a company money. Some government agencies that regulate business and the stock market require companies to submit financial statements to them. Additionally, stockholders, suppliers, and banks also benefit from the financial reports that are generated. (Horngreen, Stratton, & Sundem, p. 5) …

…and managerial accounting both are very important aspects of the business world. Most companies have some form of each type of accounting incorporated into their business operations. By following the appropriate standards for each, the company will be able to successfully keep track of their financial standing for internal as well as external purposes. References Horngreen C. T., Stratton, W. O., & Sundem, G. L. (2002). Introduction to Management Accounting (12th ed.). Prentice Hall: New Jersey.