Different streams of accounting

Question

Write down the different streams of accounting?

Answer 1

i) Financial Accounting: is the course in that business transactions are recorded methodically in the different books of accounts managed by the organization in order to make financial statements.

ii) Cost Accounting: is the procedure of recording and classifying of expenditure sustained throughout the operations of the organization in a methodical way, in order to determine the cost of a cost center with the objective to control the cost.

iii) Management Accounting: is the procedure of study, presentation and interpretation of accounting information gathered with the assist of cost accounting and financial accounting, in order to aid management in the procedure of decision making, creation of policy and daily operation of an organization. Therefore, it is clear from the above that the management accounting is based on cost accounting and financial accounting.