What is Accounting & how it is classified?

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Meaning of Accounting

As you know Accounting is very vast subject and distributed among various branches which we will discuss here further and in details you will find in new blogs on this website so stay tuned with us.
Below are the Branches of Accounting

  1. Financial Accounting:
    Financial accounting is the field of accounting concerned with the summary, analysis and reporting of financial transactions related to a business. … It includes the standards, conventions and rules that accountants follow in recording and summarizing and in the preparation of financial statements.
  2. Managerial Accounting
    In management accounting or managerial accounting, managers use accounting information in decision-making and to assist in the management and performance of their control functions.
  3. Cost Accounting
    Cost accounting 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.
  4. Auditing
    An audit is an “independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.
  5. Tax Accounting – For understanding tax accounting you need to understand tax.
    Tax: A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, or national).
    Tax accounting is the subsector of accounting that deals with the preparations of tax returns and tax payments.
  6. Fiduciary Accounting
    A fiduciary accounting (sometimes called a “court accounting”) is a comprehensive report of the activity within a trust, estate, guardianship or conservatorship during a specific period.
  7. Project Accounting
    Project accounting is a type of managerial accounting oriented toward the goals of project management and delivery.
  8. Forensic Accounting
    Forensic accounting, forensic accountancy or financial forensics is the specialty practice area of accounting that investigates whether firms engage in financial reporting misconduct. Forensic accountants apply a range of skills and methods to determine whether there has been financial reporting misconduct.
  9. Political Campaign Accounting
    Political campaign accounting is a specialty practice area of accounting that focuses on developing and implementing financial systems needed by political campaign organizations to conduct efficient campaign operations and to comply with complex financial reporting statutes. It differs from traditional management and financial consultancy in that it incorporates election law requirements and the unique requirements of political campaigns.
  10. Accounting Information System
    An accounting as an information system is a system of collecting, storing and processing financial and accounting data that are used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources.

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