Branches of Accounting

Branches of Accounting / Streams of Accounting:

 The important branches of Accounting are,

    1.Financial Accounting
    2.Cost Accounting
    3.Management Accounting
    4.Inflation Accounting
    5.Human Resource Accounting

      

What is Financial Accounting:

•   The main purpose of Accounting is to ascertain the financial results i.e., profit or loss in the operations during a specific period of time.
•   It is also aimed at knowing the financial position i.e., assets, liabilities and equity position at the end of the year.
• It provides relevant data which is helpful in decision making.
• It also helpful for planning and controlling the operations of the business.

What is Cost Accounting:

•  The purpose of Cost Accounting is to analyse the expenditure so as to ascertain the cost of various products manufactured by the firm and fix the prices.
• It also helps in controlling the costs.
• It also provides necessary costing information to management for decision making.                                                     

  What is Management Accounting:   

• The purpose of Management Accounting is to assist the management in taking rational policy decisions.
•  This branch of accounting is mainly concerned with providing the necessary accounting information about funds, costs, profits, etc., to the management.

What is Inflation Accounting:

•   It is concerned with the adjustment in the value of assets and of profit in light of changes in the price level.
• It is concerned with the overcoming of limitations that arise in financial statements on account of recording of the assets at their historical or original cost.

What is Human Resource Accounting:

•    Human resource accounting is a accounting which seeks to report and emphasize the importance of human resources in a company's earning process and total assets.
• It is concerned with the process of identifying and measuring data about human resources. 
• In simple words it is accounting for people as organisational resources.