There are following three main branches of accounting:
(1) Bookkeeping.
(2) Financial accounting.
(3) Managerial accounting.
Definition and Evolution of Bookkeeping:
Firstly accounting is related to recording of transactions. The process of recording transactions in the books is called “bookkeeping” as records are kept and stored in the books of accounts.
Definition, Evolution and Importance of Financial Accounting:
Secondly accounting is concerned with measuring, summarizing and presenting the data, recorded by bookkeepers in monetary terms, to the persons who need this information. This aspect of accounting is called “financial accounting”.
Financial accounting has its origins from the earliest times in the history of our society. Accounting is primarily concerned with providing information for internal and external users. Users of accounting information may be included management, lenders, customers, government, tax authorities, prospective investors, etc.
Definition of Managerial Accounting:
Accounting is linked with controlling what is happening within the organization. This is called “managerial accounting” as this branch of accounting helps the managers to control the ongoing activities and to make better decisions.
Conclusion
Here in this blog, you have learned about the branches of accounting. I hope you have understood about branches of accounting. And also if you are facing any problem while doing accounting essay help and you need help.
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