3. According to investopedia, "Accounting is divided into several branches to better serve the needs of different
users with varying information needs. These branches sometimes overlap and they are often closely interwind"
Branches of accounting
4. Branches of accounting
･Financial Accounting
･Management Accounting
･Government Accounting
･Auditing
･Tax Accounting
･Cost Accounting
･Accounting Education
･Accounting Research
5. FINANCIAL
ACCOUNTING
This branch is the broadest branch and is focused on the needs of external
users.
Financial accounting is the field concerned with the summary, analysis, and
reporting of financial transactions related to a business. This involves the
preparation of financial statements available for public use.
6. MANAGEMENT
ACCOUNTING
In this branch the managers use accounting information in decision-
making and to assist in the management and performance of their
control functions.
7. GOVERNMENT
ACCOUNTING
This branch maintains tight control over resources while also
compartmentalizing activities into different funds in order to clarify how
resources are being directed at various programs. Government accounting
deals with how the funds of the government are recorded and reported.
8. AUDITING
This is the process of examining the accuracy of financial statements and
company's finoancial reporting.
There are two types of auditing: the external and internal auditing.
9. AUDITING
EXTERNAL AUDITING
-refers to the examination of financial statements by an
independent CPA with the purpose of expressing an
opinion as to fairness of presentation and compliance
with the GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES (GAAP)
INTERNAL AUDITING
-deals with determining the operational efficiency of the
company regarding the protection of the company's
assests, accuracy and reliabilityof the accounting data
and adherance to certain management policies.
10. TAX ACCOUNTING
This branch is arriving at taxable profit and to payable by making
adjustments in the book profit arrived by accounting principles. All these
working and adjustments form part of the tax return and thses statements
are kept for tax audit.
11. COST ACCOUNTING
This branch is defined as a systematic set of procedures for recording and
reporting measurements of the cost of manufacturing goods and
performing services in the aggregate and in detail.
12. ACCOUNTING
EDUCATION
This branch deals with developing future accountants by creating
relevant accounting curriculum. Accounting educastion means that
education that teaches recording books of accounts.
13. ACCOUNTING
RESEARCH
This branch focuses on the search for new knowledge on the effects of the
economic events on the process of summarizing, analyzing, verifying, and
reporting standardized financial information. This examins how accounting
is used by individuals , organizations and government as well as the
consequences that these practices have.
