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Presentation 2 - Afm

This document discusses the key branches of accounting - financial accounting, cost accounting, and management accounting. It provides an overview of each branch, including their main purposes. Financial accounting focuses on ascertaining financial performance and position. Cost accounting aims to ascertain and control costs. Management accounting supplies information to help with planning, controlling activities, and decision making. The document also lists some useful purposes of accounting like facilitating decision making and complying with legal requirements. It notes some limitations, such as accounting only considers monetary values and not qualitative factors.

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Saloni Aggarwal
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30 views10 pages

Presentation 2 - Afm

This document discusses the key branches of accounting - financial accounting, cost accounting, and management accounting. It provides an overview of each branch, including their main purposes. Financial accounting focuses on ascertaining financial performance and position. Cost accounting aims to ascertain and control costs. Management accounting supplies information to help with planning, controlling activities, and decision making. The document also lists some useful purposes of accounting like facilitating decision making and complying with legal requirements. It notes some limitations, such as accounting only considers monetary values and not qualitative factors.

Uploaded by

Saloni Aggarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Amity Business School

Amity Business School

INTERNAL USERS

Amity Business School

EXTERNAL USERS

Amity Business School

BRANCHES OF ACCOUNTING

Amity Business School

Financial Accounting
Financial Accounting is the process of
identifying, measuring, recording, classifying,
summarizing,
analyzing,
interpreting
and
communicating the financial transactions and
events.
The main purpose of this branch of
accounting is to keep systematic records to
ascertain financial performance and financial
position and to communicate the accounting
information to the interested parties.
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Amity Business School

Cost Accounting
Cost Accounting is the process of accounting
and controlling the cost of a product, operation or
function.
The main purpose of this branch of
accounting is to ascertain the cost, to control cost
and to communicate information for decisionmaking.

Amity Business School

Management Accounting
This
Branch
of
accounting
provides
information designed to help all levels of
management in planning and controlling the
activities of business enterprise and decision
making. Purpose of this branch is to supply any
and all information that management may need in
taking decision and evaluate the impact of its
decisions and actions.

Amity Business School

USEFULNESS OF
ACCOUNTING
Facilitates the management and other users to
take decisions
Facilitates to replace memory
Facilitates to comply with legal requirement
Facilitates to ascertain financial position
Facilitates a comparative study
Facilitates the settlement of tax liability
Facilitates the ascertainment of value of
business
Facilitates raising loans
Acts as a legal evidence

Amity Business School

LIMITATIONS OF
ACCOUNTING

Monetary

Nature

Ignores

qualitative

elements
Historical data Ignores price level changes
Not free from bias
Window Dressing

Amity Business School

ACCOUNTING
TERMINOLOGY

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