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By definition financial accounting is: Financial accountancy (or financial accounting) is the branch of accountancy concerned with the preparation of financial statements for external decision makers, such as stockholders, suppliers, banks and government agencies. The fundamental need for financial accounting is to reduce principal-agent problem by measuring and monitoring agent's performance. The definition of managerial accounting:
MFAR 3
The branch of accounting that uses both historical and estimated data in providing information that management uses in conducting daily operations in planning future operations, and in developing overall business strategies...
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