Accounting Analysis On Financial Accounting

1185 Words5 Pages
Accounting has many branches that it can be divided into. It can be divided into several areas of activities. Accountings main branches are financial accounting, Management accounting, Cost accounting, Auditing, Tax accounting, Accounting systems, Fiduciary accounting and Forensic accounting. Financial accounting: This branch of accounting measure’s and records the transactions of a business. Financial accounting focuses on the preparation of the five basic financial statements namely statements of financial position, statements of comprehensive income, statements of cash flows, statement of changes in equity and notes to financial statements. At the end of a period usually a year a profit and loss account and a balance sheet is prepared…show more content…
It is governed by the internal revenue code and has specific instructions that should be followed by individuals and companies when preparing tax returns. Accounting Systems: Accounting systems involves the implementation, installation, development and monitoring of accounting procedures and the systems used in the accounting process. This includes the gathering of accountable financial data, software management, accounting personnel directing and the designing of business forms to be used in the data- gathering process. This branch is linked to management advisory services. To be successful in this field technical knowledge and skills in information technology is needed. Fiduciary Accounting: Fiduciary accounting is the accounting and evaluation of a third party’s business, property and possessions maintained under the guardianship by an entrusted individual. A few examples of fiduciary accounting include receivership, trust accounting and estate accounting. Forensic Accounting: This branch involves the investigation of embezzlement or fraud using accounting skills and analysing financial information to be used in legal proceedings. Forensic accounting deals with court and litigation cases, fraud investigation, claims and dispute resolution and other areas that involve legal matters. This area is a popular trend in
Open Document