What is accounting:
The language of business. A means to communicate financial information. A way to convey information about a business to users.
Branches of Accounting
Branches of Accounting
Financial Accounting
Cost Accounting
Auditing
Financial accounting concerned with the preparation of financial statements for decision makers. It involves the basic accounting processes of recording, classifying, and summarizing transactions. Assets=Owners Capital+Liability
Financial Accounting
to evaluate the profitability and solvency of a business.
Management Accounting
The process of identification, measurement, accumulation, analysis, preparation, interpretation & communication of information used by management to plan, evaluate & control within an entity & to assure use of & accountability for its resources.
is
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Cost accounting
is to determine the cost of goods manufactured or produced by the business. It helps the management of the business in controlling the costs by indicating avoidable losses and wastage
Tax Accounting
Tax accounting is the branch relating of accounting to the
government agencies.
Auditing