Classification of Accounting
Classification of Accounting:
The word accounting can be classified in to 3 categories
Financial Accounting
Cost Accounting
Management Accounting
Financial Accounting:
Financial accounting is the concerns with recording of day to day transactions. The main objective of finance accounting is to find out the profitability & to provide information about financial position of the business concern. Two principle statement of financial accounting an income and expenditure statement, (P&L a/c, Balance Sheet) accounting positional statement.
Income & expenditure statement reveals profit earned or loss & system for a given period. All revenue transactions related to accounting periods included in the statement to determine the probability of the concern. Balance sheet reveals the financial position of the business concern on a particular data or day.
Financial accounting refers to accounting information developed for the use of external parties such stock holders, suppliers, govt & regular agencies.
Source: A/c Books & Notes
Tags: Account, accountant, accounting, Accounting Management, Accounting Software, Accounting Statement, Classification of Accounting, finance, financial accounting, Management, Management Accounting, tax
By: Management Duniya
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