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Branches of Accounting and Users of Accounting Information

The document outlines four main branches of accounting: 1) Financial accounting deals with recording business financial transactions. 2) Management accounting focuses on preparing reports to assist managers in decision making. 3) Tax accounting specifies how tax authorities treat financial transactions. 4) Not-for-profit accounting is used by non-profits like governments, schools, and charities. It also lists the professional values and ethics of accountants as integrity, objectivity, competence, confidentiality, and compliance with standards. Bookkeeping involves recording transactions while accounting includes designing information systems for users.

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77 views1 page

Branches of Accounting and Users of Accounting Information

The document outlines four main branches of accounting: 1) Financial accounting deals with recording business financial transactions. 2) Management accounting focuses on preparing reports to assist managers in decision making. 3) Tax accounting specifies how tax authorities treat financial transactions. 4) Not-for-profit accounting is used by non-profits like governments, schools, and charities. It also lists the professional values and ethics of accountants as integrity, objectivity, competence, confidentiality, and compliance with standards. Bookkeeping involves recording transactions while accounting includes designing information systems for users.

Uploaded by

Rachel Mae Fajardo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CHAPTER III

BRANCHES OF ACCOUNTING AND USERS OF ACCOUNTING INFORMATION

Financial Accounting Deals with financial transactions of a business

Management Accounting Focuses on the preparation of reports for use of


managers in their decision making

Tax Accounting Lays down the different treatments of the taxing


authorities regarding financial transactions

Not-for-profit Accounting Used for government agencies, churches,


nongovernment organizations, charitable
institutions and schools

A. External
1. Investors
2. Employees
3. Lenders
4. Suppliers and other trade creditors
5. Customers
6. Governments and their agencies
7. Public
B. Internal

Professional Values and Ethics of Accountants


 Integrity
 Objectivity
 Professional competence and due care
 Confidentiality
 Professional behavior
 Compliance with technical standards

Bookkeeping
Process of recording financial transactions and keeping financial records

Accounting
Includes the design of an information system that meets the user’s needs

Sources: Fundamentals of Accountancy, Business and Management – Joselito G. Florendo


Financial Accounting and Reporting – E.B. Cabrera; G.A. Cabrera

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