Question

Discuss briefly the branches of accounting.

Answer 1

The following are the branches of accounting:

1. Financial Accounting: It involves recording financial transactions and events. It provides financial information to the users for taking decisions.
2. Cost Accounting: It involves the collection, recording, classification and appropriate allocation of expenditure for the determination of the costs of products or services and for the presentation of data for the purposes of cost control and managerial decision making.
3. Management Accounting: It is concerned with the presentation of accounting information in such a way as to assist management in decision making and in the day-to-day operations of an enterprise.
4. Social Responsibility Accounting: It is concerned with the presentation of accounting information by business entities and other organisations from the viewpoint of the society by showing the social costs incurred such as environmental pollution by the enterprise and social benefits such as infrastructure development and employment opportunities created by them.
5. Human Resources Accounting: It is concerned with the identification, quantification and reporting of investments made in the human resources of an enterprise.