Accounting: The branches, the uses and limitations of financial accounting

Accounting vs. Book-keepingBook-keeping concerns itself with the recording (correctly and in a set of books) of those transactions that result in the transfer of money or money’s worth. Accounting, on the other hand, is holistic in scope. It includes the classification, summarizing and presenting best tax accountants near me information, as well as the analysis thereof.

Accounting vs. Accountancy

Accounting is the body of knowledge. It includes postulates, assumptions and conventions as well concepts and principles. Accounting is the practice and art that accompanies the science of accounting. There are many branches. Financial AccountingThe objective of financial accounting (or financial accounting) is to assess the results (profit or loss), and to report the financial situation (Balance Sheet), as at a particular date.

Cost Accounting

It helps businesses manage their costs by identifying avoidable losses and wastes. It helps businesses to manage their costs by indicating potential losses and wastes. Management Accounting These are the objectives of financial accounting. They can be achieved by recording financial transactions according to a set number of principles. The data must be categorized, analyzed and presented so that business results and financial position are easily ascertained.

Leave a Reply

Your email address will not be published. Required fields are marked *