Economic and financial aspects of business Essay

economical and financial aspects of business - Essay Example& FESS, P.E., 2005Environmental accounting - It shows the role played by intrinsic environment in economy. It provides data which shows contribution of natural resources in economy and costs born by economy due to pollution and other environmental factors.Financial accounting is purely related to the participate of daily transactions. In it only those transactions are considered in which money is directly or indirectly involved. It provides information to the present and potential shareholders and stakeholders of a business such as investors, creditors, debtors, suppliers, customers, financial analysts and government agencies, just about the financial condition of the business. As it has to serve the information needs of a diversified base of users who stomach diversified needs, so it presents the financial accounts in a very structured manner and strictly follows sealed rules, these rules are called Generally Accepted Accounting Principles or GAAP.Managerial accounting is defined in sideline words The process of identifying, measuring, analyzing, interpreting, and communicating information for the pursuit of an organizations goals.INVESTOPEDIAIt fulfills the information needs of internal stakeholders of business as managers and employees. It provides useful accounting information to management of organization, to support them in making more educated and informed decisions. It is mostly related with such decisions as continue or shut-down a factory, make or demoralise decision, drop a product or not etc..Financial accounting information is generated for the use of away stakeholders of organization such as stockholders, investors, creditors, debtors, suppliers, customers, government agencies, financial analysts and other regulatory bodies.Managerial accounting establishment generates information for the internal stakeholders of organization especially for management to support them in effecti ve