Most Accounting Branches
The Main Types or Sub-fields of Accounting include inflation accounting, financial accounting, Human resource accounting, managerial accounting, Social Responsibility Accounting, cost accounting, Tax or value-added accounting.
Generally, Financial accounting is used in accounting work and works to show those accounting figures on a certain date of business. financial accounting includes preparation of financial details to interpret and Communication of information to the outsiders. where the work of bookkeeping ends. there starts the activity of accounting.
thus, the final step of financial accounting is the preparation of profit and loss account and balance sheet. For every business, financial accounting has become mandatory by law and other reasons.
Cost Accounting(Types or Sub-fields of Accounting)
Cost accounting is also a branch of accounting. The process of determining this cost and technical planning decision making and control is the basic managerial task.
Thus, The main purpose of cost accounting is to determine the cost of the item or service.cost accounting includes classification, recording, allocation, and reporting of the current cost. also, find Top 10 Differences – Cost Accounting VS Management Accounting.
Management Accounting(Types or Sub-fields of Accounting)
The area of management accounting is very large, it involves financial accounting, cost accounting, budgeting, tax planning, management information and other aspects of financial management.it provides accounting information for the management decisions.
therefore, it includes cost accounting which keeps accounts pertaining to cost and makes available the analysis of various information related to cost.
Also, Read More:
- What are the Users or Parties interested in Accounting Information.
- Revenue Income and Capital Income.
- Sectional and Self-balancing ledgers: Meaning, Format, and Notes.
Social Responsibility Accounting
it is a new concept but in this part of accounting social costs spent by the organization and accounting of social profits accrued by them. its report it includes Social Responsibility Accounting includes evaluating the impact of Corporate Social Responsibility measuring of social cost and impact of business on society and social reporting.
Generally, You can find the Features or Characteristics of Managerial Economics [simple Notes]
Inflation Accounting(Types or Sub-fields of Accounting)
Inflation Accounting information is based on historical cost but due to changes in price level, the purchasing power of money is declining. due to inflation and declining of purchasing power of money, prices of commodities changes accounting for price level changed. Generally, Types or Sub-fields of Accounting.
Human Resources Accounting
Human resource accounting shows the cost and monetary value of peoples or partners for the business organizations.
thus, it is the process of identifying and measuring data about human resources and communicating this information to interested parties of the organization.
Read more About: Qualities of an Ideal Financial Statement.
Tax or Value Added Accounting
it is a new concept in which value-added statement shows the value created and the distribution of it to interested groups example: to employees, shareholders, promoters of capital and the government.
Define the concept of value added as “the market price of the output of an enterprise left the price of goods and service acquired by transfer from other forms.
Generally, all employees owners, creditors, and government (through taxation) are recipients of the enterprise income. this is the total pie circle that can be divided among the various contributors of factor inputs to the Enterprise in the production of goods and services”
Thus, Now you found the Types or Sub-fields of Accounting.