Accounting and its branches
· Insight Academy of Commerce
Accounting is the process of recording, classifying and summarising financial transactions, and interpreting and communicating the results to help people make informed decisions.
The three main branches of accounting are:
1. Financial accounting: Records business transactions and prepares financial statements to show a business’s performance and financial position.
2. Cost accounting: Measures and analyses the cost of products or services to help control costs and improve efficiency.
3. Management accounting: Provides financial and non-financial information to managers for planning, decision-making and control.