In order to meet the .ever increasing demands made on accounting by different interested party* (such as owners, management, creditors, taxation authorities etc.) the various branches of accounting come into existence:
1.
FINANCIAL ACCOUNTING:
The main purpose of financial accounting is to ascertain the true result (profit or loss) of business operations during a particular period of time and to state the financial position of the business on particular point of time. Financial accounting produces general purpose reports for use by the great of people who are interested in the organization bu.1 who are not actively engaged in its day operation.
2. COST ACCOUNTING:
The main object of cost accounting is to determine the cost of goods manufactured or produced P the business. It also helps the management of the business in controlling the costs by indicating avoidable losses and wastes.
3. MANAGERIAL ACCOUNTING:
The object of this accounting is to communicate the relevant information periodically to management of the business to enable it to take suitable decisions.
It should be remembered that in this book, we arc concerned only with financial accounting Financial accounting is the oldest and the other branches have developed from it. The objects of financial accounting can only be achieved by recording business transactions in a systematic manner according set of principles.
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