respose 2 malc

Reply to student response in 150 words

1. Financial accounting deals with the organization as a whole, reporting to parties outside the organization, is highly regulated and primarily uses historical data, also uses GAAP.

2. Managerial accounting deals with responsibilities centered within the organization as well as with the organization as a whole,  deals with activities inside an organization, is unregulated, use projections about the future

Financial accounting is mandatory as per the statutory requirement. Financial accounting is preferred, because legally every company is bound to disclose right and accurate information to the potential and existing investors.