What are the branches of Accounting? Explain. OR What are the sub-fields of Accounting? [Dec 2023]

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Answer Solution: Accounting has basically three branches: (a) Financial Accounting:  It is concerned with the maintenance of books of account of an enterprise,  Recording & classifying all its financial transactions and events with a view to prepare Annual Financial Accounts,  To be used by various interest groups ( i.e. General Purpose Financial Statement). ( b) Management Accounting:  It refers to use of accounting data with proper analysis in reporting, so as to serve the need of management.  To help them in decision making and exercising proper controls.  It may not have separate books of account but uses the data from financial accounts & cost accounts and Properly analyses it, compares it, calculate ratios etc. and present it to management periodically. (c) Cost Accounting:  Generally manufacturing concerns maintains cost accounts.  With a view to ascertain the cost of goods manufactured or services rendered with proper break-up of cost.  Also providing useful data to management for effective cost control and  Govt. also has prescribed maintenance of cost records by specific industries. (d) Social Responsibility Accounting:  Concerned with measurement and reporting of the impact of the operations of an organisation on the society.  Attempts to disclose the costs incurred and  Benefits accrued to the society as a consequence of the activities of the organization. (e) Human Resource Accounting:  It is the process of measuring the amount of investments done in the human resource of an enterprise.  It also reports the information regarding the activities related to human resource performed by the organisation and  The end results of the human resource related activities to the stakeholders.

What are the branches of Accounting? Explain. OR What are the sub-fields of Accounting? [Dec 2023]

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