BRANCHES OF ACCOUNTING Flashcards
It is the accountancy profession’s most significant service to the public.
Auditing.
It is the independent examination that ensures the fairness and reliability of the reports that management submits to users outside the business entity.
An external audit
These perform an audit, in accordance with specific laws or rules, of the financial statements of a company, government entity, other legal entity, or organization, and is independent of the entity being audited
The external auditor
It is a mechanical task involving the collection of basic financial data. These procedures usually end when the basic data have been entered in the books of accounts and the accuracy of each entry has been tested.
Bookkeeping.
It is the process that involves the recording of cost data in books of accounts. It is, therefore, similar to bookkeeping except that data are recorded in much greater detail.
Cost Bookkeeping
this makes use of those data once they have been extracted from the cost books in providing information for managerial planning and control.
Cost accounting
It is focused on the recording of business transactions and the periodic preparation of reports on financial position and results of operations.
Financial Accounting
It is a relatively new branch of accounting that has grown rapidly over the last 30 years. Financial managers are responsible for setting financial objectives, making plans, and generally safeguarding all the financial resources of the entity.
Financial Management
A management accounting system incorporates all types of financial and non-financial information from a wide range of sources.
Management Accounting
this includes the preparation of tax returns and the consideration of the tax consequences of proposed business transactions or alternative courses of action.
Taxation
It is concerned with the identification of the sources and uses of resources consistent with the provisions of city, municipal, provincial or national laws.
Government Accounting
