WEEK 2 – BRANCHES OF ACCOUNTING Flashcards
branch of accounting involves the independent examination of financial statements to ensure they comply with GAAP. Audits are important because they eliminate the need for accounting standards.
AUDITING
is the broadest branch and is focused on the needs of external
(outside) users and is primarily concerned with processing historical
data.
FINANCIAL ACCOUNTING
the accounting standards that are followed
in financial accounting
GAAP (Generally Accepted Accounting Principle)
emphasizes the preparation and analysis of accounting
information within (internal) the organization
MANAGEMENT ACCOUNTING
is the branch of accounting that has a purpose to record and
report how government funds are managed and spent
Government Accounting
person who audits
AUDITOR
Some examples of auditing are
cash handling
purchases
Financial Reports
Daily Cash Reports
Payroll Reports
Inventory
branch of accounting wherein depreciation and inventory valuation are involved
helps clients follow rules set by tax authorities
Tax Accounting
branch of accounting does the processing of accounting for costs from the point at which** its expenditure is incurred or committed to the establishment** of the ultimate
relationship with cost units
COST ACCOUNTING
this branch of accounting deals with developing
future accountants
Accounting Education
focuses on the search for new knowledge
Accounting Research
EXAMPLE OF SERVICES OF FINANCIAL ACCOUNTING
Financial Statements
Income Statement
Cash Flow Statement
Balance Sheet
Accrual Accounting
Cost Principle
Matching Principle
Accounts Receivable
Retained Earning Statement
Full Disclosure Principle
EXAMPLE OF SERVICES OF MANAGEMENT ACCOUNTING
Cost Allocation
Budgeting and Forecasting
Variance Analysis
Cash Flow Analysis
Constraint Analysis
Product Costing
Trend Analysis
Cost Accounting
Capital Budgeting
EXAMPLE OF SERVICES OF GOVERNMENT ACCOUNTING
General Fund
Special Revenue Fund
Debt Service Fund
Capital Projects Funds
Permanent Funds
EXAMPLE OF SERVICES OF TAX ACCOUNTING
Depreciation
Inventory Valuation
Tax Returns
EXAMPLE OF SERVICES OF COST ACCOUNTING
Standard Costing
Activity-Based Costing
Lean Accounting
Marginal Costing
EXAMPLE OF SERVICES OF ACCOUNTING EDUCATION
Instructors
Professors
EXAMPLE OF SERVICES OF ACCOUNTING RESEARCH
Reviewers
Researchers
