Managerial Accounting vs Financial Accounting: Which First?

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Accounting 2103 creditsACE and NCCRS recommended

Managerial Accounting vs Financial Accounting: which one do you need?

Usually, yes: colleges teach Financial Accounting (the reports a company gives investors and lenders) first, and Managerial Accounting (costs, budgets and decisions inside the company) lists it as a prerequisite in Texas, at Penn State and at Oregon State. UPI Study teaches Managerial Accounting only: Accounting 210, with ACE and NCCRS recommendations and no prerequisite listed in its syllabus. It does not offer Financial Accounting, so if your program needs both, plan to take Financial Accounting at a college or by exam.

Managerial Accounting course

Accounting 210 · 3 credits · ACE and NCCRS

Managerial Accounting

Costs and decisions inside a company: cost behavior, job-order and process costing, CVP, budgets, variances and capital budgeting.

Usually the first accounting course

Financial Accounting

Recording transactions under GAAP and preparing the balance sheet, income statement and cash flow statement for people outside the company.

Not offered at UPI Study.

Financial first?
Usually, yes
Accounting 210 prerequisite
None listed
Credit
3 semester hours (ACE, NCCRS)

What you learn

Financial Accounting from Texas's ACCT 2301 and CLEP's outline; Managerial Accounting from the Accounting 210 syllabus.

Financial Accounting: for people outside the company

  • The accounting cycle and GAAP
  • The balance sheet and income statement
  • The statement of cash flows
  • Receivables, inventory and long-term assets
  • Bonds and stock

In both

  • Reading financial statements (Accounting 210, chapter 2)

Managerial Accounting: all in Accounting 210

  • Cost concepts and cost behavior
  • Job-order and process costing
  • Cost-volume-profit analysis
  • Budgets and variance analysis
  • Segment reporting and performance
  • Capital budgeting

Side by side

Financial and Managerial Accounting, side by side
 Financial AccountingManagerial Accounting
Who the numbers are forInvestors, lenders and others outside the companyManagers inside the company
Texas common courseACCT 2301 Principles of Financial AccountingACCT 2302; prerequisite: ACCT 2301
Penn StateACCTG 201 Introduction to Financial AccountingACCTG 202; enforced prerequisite: ACCTG 201
Oregon StateBA 211Z Principles of Financial AccountingBA 213Z; prerequisite: BA 211Z, C- or better
Georgia TechACCT 2101 Principles of Accounting IACCT 2102 Principles of Accounting II
At UPI StudyNot offeredAccounting 210: ACE and NCCRS, 3 semester hours

Accounting 210 has 12 chapters and 58 instructional hours, and ACE recommends it at the upper-division level (ACE ID UPIS-0020). Its chapter on financial statements teaches managers to read them; it is not a Financial Accounting course.

Which one do you need?

Accounting 210 fits if

  • Your program lists Managerial Accounting or Accounting II
  • You have done Financial Accounting, or your college does not ask for it first
  • Your college works with ACE or NCCRS recommendations

You need Financial Accounting if

  • Your program lists Financial Accounting or Accounting I
  • Your college requires it before Managerial Accounting
  • Take it at a college or by CLEP exam

Questions, answered

Do I need Financial Accounting before Managerial Accounting?

Usually, yes. Texas's common course ACCT 2302 Principles of Managerial Accounting lists “Prerequisite: ACCT 2301 Principles of Financial Accounting”, Penn State's ACCTG 202 has “Enforced Prerequisite at Enrollment: ACCTG 201”, and Oregon State asks for BA 211Z with a C- or better before BA 213Z. Accounting 210 lists no prerequisite, so you can start it any day; if your degree needs Financial Accounting too, ask your program whether the order matters.

What is the difference between managerial and financial accounting?

Who the numbers are for. In Texas's words, financial accounting prepares “a balance sheet, income statement, statement of cash flows, and statement of shareholders' equity” for “users of financial information who are external to the company”, while managerial accounting studies information “relevant to decisions made by internal managers”. Georgia Tech names them Principles of Accounting I and II: financial first, then managerial. Accounting 210's 12 chapters are all on the managerial side.

Does UPI Study offer Financial Accounting?

No: UPI Study teaches Managerial Accounting only. One route to Financial Accounting credit is CLEP Financial Accounting, which covers “skills and concepts that are generally taught in a first-semester undergraduate financial accounting course”. ACE recommends 3 semester hours for a score of 50, and the exam costs $97 plus a test center or remote proctoring fee; each college sets its own CLEP policy, so check yours first.

How many credits is Managerial Accounting?

NCCRS recommends 3 semester hours, lower division, in Accounting among other subjects; ACE recommends 3 (ACE ID UPIS-0020).

Does Managerial Accounting count as Accounting credit?

Its NCCRS recommendation lists Accounting, Business Administration, Finance, Management, Marketing, CIS, or Administration. Your college decides which requirement it fills.

How long is Managerial Accounting?

Its syllabus has 12 chapters and 58 instructional hours. It is self-paced, so you finish as fast or as slow as you want.

How is the Managerial Accounting final exam set up?

100 multiple-choice questions, counting for 50% of the grade.

What do I need to pass Managerial Accounting?

Quizzes 20%, the assignment 30%, the final exam 50%. A pass is 70 or more.

Which textbook does Managerial Accounting use?

The syllabus lists Goedl, Patricia. Principles of Managerial Accounting (open access), with other references.

Does Managerial Accounting have an ACE recommendation?

Managerial Accounting: yes, ACE ID UPIS-0020, 3 semester hours. ACE listings run three years and UPI Study renews them as they end; credit you have earned stays valid for 10 years.

Can I see the Managerial Accounting syllabus before I enroll?

Yes: the Managerial Accounting syllabus opens after a free sign-in. It lists all 12 chapters, the grading and the credit recommendation, so you can send it to your registrar.

When can I request my Managerial Accounting transcript?

Once Managerial Accounting shows 100% complete in your dashboard. Assignments take about 48 hours to be checked, so allow about two days after your last submission; then request the transcript and UPI Study emails it to your college.

Do colleges give credit for Managerial Accounting?

ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities. ACE recommends 3 semester hours at the upper-division level (ACE ID UPIS-0020), and NCCRS recommends 3 in Accounting, Business Administration, Finance, Management, Marketing, CIS, or Administration. It is self-paced and online. Search your school in Find My College and ask your registrar which course Accounting 210 would count as. It helps to name the subject: NCCRS recommends Managerial Accounting in Accounting.

Where these credits can go

ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

  • Thomas Edison State University (TESU) logo
  • University of the People logo
  • Strayer University logo
  • Post University logo
  • Charter Oak State College logo
  • Indiana Tech logo
  • Columbia Southern University logo
  • University of Arkansas Grantham logo
  • American College of Education logo
  • Nexford University logo
  • Newlane University logo
  • Pathways College logo
  • Dunlap-Stone University logo
  • Woodmont College logo
  • University of Management and Technology (UMT) logo
  • Crestpoint University logo
  • Maestro University (formerly Bottega University) logo
  • Gracelyn University logo
  • EC-Council University logo

Plus many more partner colleges and ACE and NCCRS cooperating colleges.

Find My College →

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Check your college first

ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

Sources (8)

UPI Study facts are from our course catalog, syllabi and course rules. CLEP and AP are registered trademarks of College Board, which is not connected with UPI Study. CLEP is a trademark of College Board, which is not connected with UPI Study; CLEP facts are as College Board's own pages stated them. Colleges are named only as examples of their own published catalogs; none is connected with UPI Study.