Financial Accounting The accounting system is a major quantitative information system in every organization.

it provides information for four broad purposes: 1. Internal routine reporting to manager for cost planning and cost control of operation, and performance evaluation of people an activities. 2. Internal routine reporting to managers on the profitability of products, brand categories, customers, etc. 3. internal non-routibe reporting to managers for strategic and tactical decisions. 4. External reporting through financial statements to investors, government authorities and other interested parties. The first three functions are the domain of management accounting; and, the forth function of external reporting is truly called financial accounting. Financial accounting operates under a lot of constraintsconstraints of accounting principles, accounting standards, etc. whereas management accounting enjoys greater freedom. Thus, it can be said that the basic purpose of accounting is to provide decision makers whit information that is useful in making economic decisions. FINANCIAL ACCOUNTING A MANAGERIAL EMPHASIS ASHOK BANERJEE PAGE. 2