Branches of Accounting:
What are the branches of
Accounting has three main
forms of branches, viz, financial accounting, cost accounting, and
management accounting. These forms of accounting have been developed to
serve different types of objectives.
It is the original form of
accounting. It is mainly confined to the preparation of financial statements
for the use of outsiders like creditors, banks and financial institutions
etc. The chief purpose of financial accounting is to calculate profit or
loss made by the business during the year and exhibit financial position of
the business as on a particular date.
Function of cost accounting is
to ascertain the cost of the product and to help the management in the
control of cost.
Management Accounting or Managerial Accounting:
It is accounting for
management. i.e., accounting which provides necessary information to the
management for discharging its functions. It is the reproduction of
financial accounts in such a way as will enable the management to take
decisions and to control various business activities.