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Sir, I am self-studying from Kaplan text and I am stuck in distinguishing the difference between Financial Management, Management Accounting, and Financial Accounting.
Could you please help by telling me which of the following lies under what category? And Why they are as such?
1) Review of Overtime spending
2) Depreciation on Non-current Assets
3) Establishing Dividend Policy
4) Evaluating Proposed Expansion Plans
5) Apportioning Overheads to Cost Units
6) Identifying Accruals & Prepayments1 is management accounting – the relevance is to help manage the company better
2 is financial accounting – depreciation is an accounting concept required by accounting standards
3 is financial management – the dividend policy affects shareholders wealth which is the responsibility of the financial manager
4 is financial management (for the same reason as (3) )
5 is management accounting – it relates to basic costing as you will have dealt with in Paper MA (was F2)
6 is financial accounting (for the same reason as (2) )I do suggest that you watch my free lectures. They are a complete free course for Paper FM and cover everything needed to be able to pass the exam well. If you are watching the lectures then you do not really need a Study Text – the essential book is the Revision Kit because it is full of past exam and other exam standard questions for practice, and practice is vital to passing the exam.
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