Branches Of Accounting

                            

Branches Of Accounting

1. Financial Accounting :-

it is that branch of accounting which is concerned with recording of business transactions of financial nature in a systematic manner to ascertain the profit or loss of the accounting period and to present the financial position of the business.

2. Cost Accounting :-

it is that suffield branch of accounting which is concerned with ascertainment of total cost and per unit cost of goods or services produced provided by a business firm.

3. Management Accounting :-

it is that suffered branch of accounting which is concerned with presenting the accounting information in such a manner that helps the management in Planning and controlling the operation of a business and in better decision making.

Interested users parties of accounting information and their needs :

They are numbers which are interested in knowing about the function soundness and the possibility of the business.

Internal users

1. Owner : return of the investment financial health of their companies and business.

2. Management : to evaluate the performance to take various decisions.

External users

1. Investors and potential investors : safety and growth of the investments future of the business.

2. Creditors : assessing the financial feasibility ability of the business to pay its debt.

3. Landers : repaying capacity credit worthiness.

4. Tax authorities : assessment of due taxes true and fair disclosure of accounting information.

5. Employees : profitability to claim higher wages and bonus whether the deuce deposited regularly.

6. Other : customer researchers etc. may seek different information for different reasons.