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  Financial Accounting

Introduction of Financial Accounting

Accounting is a very old science that intended at keeping records of several transactions. The accounting is referred to be necessary for keeping records of all receipts and payments and that of the income and expenditures. Accounting can be generally categorized into three categories.

Financial Accounting, aims at observing profit or losses of an accounting year and the assets and liabilities position, through recording several transactions in a systematic manner. Cost Accounting assists the business to determine the cost of production/services offered throug the organization and also gives valuable information for taking several decisions and also for cost control and cost reduction.

Management Accounting assists the management to conduct the business in a more well-organized way. The scope of management accounting is broader than that of cost accounting. Other words, it can be state that the management accounting can be referred like an extension of cost accounting. Management Accounting uses the principles and practices of financial accounting and cost accounting additionally to other modern management methods for proficient operation of a company. The major thrust in management accounting is in the direction of determining policy and formulating plans to accomplish desired purposes of management. Management Accounting creates corporate planning and strategies meaningful and effective.

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