SPECIAL FIELDS OF ACCOUNTING
With development of business activities and specialization of various fields of these activities, a number of branches for special study in accounting have evolved. Some important branches of accounting are given below:
1- Financial Accounting
2-Cost Accounting
3- Managerial Accounting
4-Government Accounting
5-Auditing
Explanation of the following fields are given below:
1- Financial Accounting: This field of accounting concerns with general accounting system. It is engaged in recording the business transactions in books and preparation of periodical reports for managers and general public.
Other definition of financial accounting:
The type of accounting which provide financial information to external users is
called financial accounting.
2- Cost Accounting: The main objective of this branch of accounting is to control the cost of production and distribution. It checks the efficiency of producing, selling and administrative departments by applying actual and pre-determined cost techniques. It also shows effects on cost with changes in the volume of production and sales.
3- Managerial Accounting: This field of accounting mainly concerns with the selection of best among various alternatives. It uses the techniques of historical. Estimated and actual data as a device toward positive change.
Other definition of managerial accounting:
The type of accounting which provide financial information to internal users is
called financial accounting.
4-Government Accounting: it is the method of recording the financial transactions of the central and provincial governments. It keeps the record of expenditure, taxes, revenue and budget of various government departments. It provides information with regard to financial aspect of public administration and activities! This is also known as "Applied Accounting".
5-Auditing: it is the examination of the accounting record. The purpose of examination is to check the finances and accuracy of the accounting record and its reconciliation with the prescribed policies and procedure.
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