Financial accounting measures performance using financial reports and communicates results to those outside of the organization who may have an interest in the company’s performance, such as investors and creditors Managerial accounting uses both financial and nonfinancial information to aid in internal decision making

Accounting is the process of organizing, analyzing, and communicating financial information that is used for decision making The time value of money variables are PV, RATE, NPER, PMT, and FV.

accounting — process of organizing, analyzing, reporting, and communicating financial information that is used for decision making. financial accounting — measures the financial performance of an organization using standard conventions to prepare financial reports used by external entities. managerial accounting — process that uses both financial and nonfinancial information as a basis for making decisions within an organization. depreciation — steady decrease in value of an asset over time.