2. branches of accounting
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There are several main branches of accounting: Financial accounting focuses on external users and communicating information through financial statements. Management accounting provides timely information for internal decision-making. Government accounting deals with recording and reporting government funds. Auditing examines books of accounts to ensure compliance, while tax accounting prepares tax returns. Cost accounting concerns cost collection and control, and helps set product prices. Accounting education and research develop curriculum and standards.
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2. branches of accounting
- 3. Financial Accounting - the broadest branch and is focused on the needs of external users. - information is communicated in a complete set of financial statements. - primarily concerned with processing historical data. - uses information for decision-making needs. Management Accounting - provide timely and relevant information for those internal users of accounting information, such as the managers and employees in their decision-making needs. - involves financial analysis, budgeting and forecasting, cost analysis, evaluation of business decisions, and similar areas
- 4. Government Accounting - deals with how the funds of the government are recorded and reported Auditing Two types of Auditing a) Internal - see to it that established accounting procedures are being followed. b) External - examination of the books of accounts to see if established criteria are followed.
- 5. Tax Accounting - involves the preparation of income tax returns and the determination of correct amount of taxes due and payable to the government. Cost Accounting - concerns primarily on cost collection, allocation and control of producing goods and services. - helps set selling price of products
- 6. Accounting Education - deals with developing future accountants by creating relevant accounting curriculum. Accounting Research - helps standard-setting bodies around the world to develop new standards that will address recent issues or trend in global business.
- 7. Short Quiz! Identify what branch of accounting renders this service 1. Preparation of general-purpose financial statements. 2. Evaluation of the performance of a sales department. 3. Develop standards to address a new business set up. 4. Review tax compliance of the business. 5. Evaluate whether a branch of the business complies with the collection and deposit policy of the company. 6. Review whether the financial statements are presented fairly and in compliance with accounting standards. 7. Report on the spending of government funds. 8. Report on the total cost of materials and labor used in the production. 9. Conducting lectures on accounting topics.