ECONOMICS

Detailed explanation-1: -The basic accounting equation states that Assets = Liabilities. Accountants record both internal and external transactions.

Detailed explanation-2: -While the focus of managerial accounting is internal, the focus of financial accounting is external, with a focus on creating accurate financial statements that can be shared outside the company.

Detailed explanation-3: -Financial accounting is the process for the preparation of financial reports of the enterprise for use by both internal and external parties.

Detailed explanation-4: -Financial accounting differs from managerial (or cost) accounting as financial reporting is more for reporting to external parties while cost accounting is more for strategic planning internally.