Branches of Accounting

D R . M A R K D. D U B L I N
LYC E U M O F T H E P H I L I P P I N E S U N I V E R S I T Y – M A N I L A
S E N I O R H I G H S C H O O L D E PA R T M E N T
 Financial Accounting

Is used by business managers to record

transactions of the business, prepare reports
based on those transactions, and thus
communicate to owner’s and creditors the
currents condition of the company and its
success of lack of success.
 These reports are the all-purpose
financial statements such as;

1. the statement of financial position

or the balance sheet statement
2. The statement of profit or loss and
others comprehensive income
3. Statement of changes of owner’s
equity
4. Statement of cash flows
5. Notes to the financial statement
 Managerial Accounting
Is used to aid business
managers in planning and
controlling business operations
and in decision making.
◦For example, the decision to open
a branch restaurant requires the
use of managerial accounting.
 Government Accounting
Is used by all branches of government and
by those who receive government funds to
oversee the complicated business of
providing government services or to report
to the government on the use of
government funding in compliance with the
imposed regulations.
 Auditing

Systematic examination and verification of a

firm's books of account, transaction records,
other relevant documents, and physical
inspection of inventory by qualified
accountants (called auditors).
Tax Accounting

Is used to prepare tax return

and to examine tax
consequences of proposed
business transactions.
 Cost Accounting
It analyzes a business’s costs to help managers
control expense. Good cost accounting
records guide managers in pricing their
products and services to achieve greater
profits.

Also, cost accounting information shows

management when a product is not profitable
and should be dropped.
 Not-for-profit Accounting

Is used by nonprofit organizations (such as

NGO’s, civic and charitable institutions) to
measure the success of their activities and to
ensure strict compliance with all
requirements imposed by law, by donors, or
by the entity’s purposes.
 Research Accounting

Accounting research is research on

the effects of economic events on the
process of accounting, and the effects
of reported information on economic
events.
It encompasses a broad range of research areas including
financial accounting, management accounting, auditing
and taxation.