Dr. & Cr. Trick

It's obvious that memorizing debits and credits is not a simple task, and for students and beginners this could be very difficult. Many confuse debits and credits all the time and whether its during an exam, or during the actual accounting practice it could cost you a lot.

But don't worry there is an easier way to deal with debits and credits. Watch this video carefully and you'll never have trouble dealing with debits and credits.

Types of Accounting

There are two types of accounting:

1. Financial
2. Managerial (cost accounting)

There are differences between financial and managerial accounting, and these differences are as follows:

• Financial accounting is for external purposes and managerial accounting is for internal purposes.
• Financial accounting is governed by GAAP, and managerial accounting does not follow any sets of standards.
• Financial accounting deals with the past, and managerial accounting accounting deals with the future.
• Financial accounting is mainly made up of reports, but managerial accounting is decision making for the company or the firm.

There are of course many other differences as well as similarities between financial and managerial accounting. But the above were the most important differences that exist between the two types of accounting.