1) Financial statements are written record of a business’s

financial situation. Financial statements include standard

reports like the balance sheet, income or profit and loss
statements, and cash flow statement. They stand as one of
the more essential components of business information, and
as the principal method of communicating financial
information about an entity to outside parties.

2) 1. Users of reports
Managerial accounting focuses on operational reporting to
be shared within a company while the Financial accounting
if focused on creating financial statements to be shared
internal and external stakeholders and the public.
2. Accounting principles

3) A responsibility accounting system provides information

to evaluate each manager on the revenue and expense items
over which that manager has primary control.
Responsibility accounting involves gathering and reporting
revenues and costs by areas of responsibility. To implement
responsibility accounting in a company, the business entity
must be organized that contains items either controllable or
uncontrollable items which assigned to the individual
manager. The various company managers and their lines of
authority should be fully defined.