• Assets: Assets are resources that a company owns or controls that have economic value. Assets can be tangible, such as cash, inventory, and equipment, or intangible, such as patents, trademarks, and goodwill.
• Liabilities: Liabilities are debts that a company owes to others. Liabilities can be current, such as accounts payable and accrued expenses, or long-term, such as bonds payable and mortgages.
• Equity: Equity is the difference between a company’s assets and liabilities. Equity can be divided into two categories: contributed capital, which is the amount of money that shareholders have invested in the company, and retained earnings, which is the company’s accumulated profit.

Here are the differences between financial and managerial accounting:

Financial Accounting

• Purpose: Financial accounting is used to provide information about a company’s financial performance to external users, such as investors, creditors, and government agencies.
• Timeliness: Financial accounting information is typically prepared on a periodic basis, such as monthly, quarterly, or annually.
• Accuracy: Financial accounting information is required to be accurate and unbiased.
• Regulation: Financial accounting is regulated by accounting standards, such as Generally Accepted Accounting Principles (GAAP) in the United States.

Managerial Accounting

• Purpose: Managerial accounting is used to provide information about a company’s financial performance to internal users, such as managers and executives.
• Timeliness: Managerial accounting information is typically prepared more frequently than financial accounting information.
• Accuracy: Managerial accounting information does not have to be as accurate as financial accounting information, but it should be reliable.
• Regulation: Managerial accounting is not regulated by accounting standards.

Here are some additional differences between financial and managerial accounting:

• Focus: Financial accounting focuses on the past, while managerial accounting focuses on the present and future.
• Users: Financial accounting information is used by external users, while managerial accounting information is used by internal users.
• Format: Financial accounting information is typically presented in a standardized format, while managerial accounting information can be presented in a variety of formats.
• Goals: The goal of financial accounting is to provide information about a company’s financial performance, while the goal of managerial accounting is to help managers make decisions that will improve the company’s performance.