[indusree.c]

What is the difference between Trial Balance and Balance Sheet ?

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A trial balance lists all accounts. It has 2 columns, one debit and one credit, where you post the balance of each account (i.e. it will be either a debit or a credit). The debits and credits have to balance.

A Balance Sheet lists shows Assets, Liabilities and Equity in a statement form. The sum of the Liabilities and Equity will equal the Assets.

[indusree.c]

What is the difference between Financial Accounting and Management Accounting?

[indusree.c]

What is the difference between Financial Accounting and Cost Accounting ?

[Just Looking]

The main purpose of financial accounting is to prepare financial reports for outside parties such as creditors, investors, bankers, and tax authorities.

Management accounting is for internal use. It provides for decision-making and doesn't have to follow any particular accounting rules (GAAP).

Cost accounting has a couple of different definitions. It falls under Management Accounting, and gives detailed info for decision making, focusing on the cost of selling or producing the products or services of a business. (in school, this is what cost accounting classes are about) Cost accounting establishes budgets and actual costs of operations (for processes, departments or product). Variance analysis is then used for decision-making, and to find ways to improve costs and profitability.