Different brooks of accounting

Question

Write down the different brooks of accounting?

Answer 1

There are three brooks of accounting:

1) Financial Accounting: is the procedure in that business dealings are recorded methodically in the different books of accounts managed by the organization so as to make financial statements. Such financial statements are fundamentally of two types: primary is Profitability Statement or Profit and Loss Account and subsequent is Balance Sheet.

2) Cost Accounting: is the procedure of recording and classifying of expenses occurring throughout the operations of the organization in a regular way, in order to determine the cost of a cost center with the intention to manage the cost.

3) Management Accounting: is the procedure of study, presentation and interpretation of accounting information gathered with the assist of financial accounting and cost accounting, so as to assist management in the procedure of decision making, formation of policy and usual operation of an organization. Therefore, it is clear from the above that the management accounting is deepened on cost accounting and financial accounting.