Chapter 1, Problem 2RQ

To determine

Accounting and the Business Environment: An introduction to Accounting and branches of accounting.

To describe:

Two main fields of accounting.

Solutions:

Accounting is the system that involves, keeping the records of the various accounting transactions, reporting the same to the management and then, analyzing the information so as to know the state of the business activities.

The two major fields of accounting are financial accounting and managerial accounting.

1. Financial accounting provides data and information to the people who are external to the business organization such as outside investors, customers, etc.
2. Managerial accounting provides the data and the information to the people that are internal to the organization such as company’s employees and the management.