Sub-field of Accounting are as
1. Financial Accounting:- financial accounting is that
branch of accounting which records financial transactions and events,
summarises and interprets them and communicates the results to the users. It
ascertains results ( profit or loss) during an accounting period and financial position
at the end.
2. Management Accounting:- it is concerned with generating
accounting information relating to funds, cost, profits etc. as it enables the
management in decision making.
3. Cost Accounting:- It ascertain the cost of products
manufactured or services rendered and helps the management in fixing prices of
product and exercising control over cost.
4. Human Resource Accounting:- It identify and make report on
investment made in human resources of an organization.
Users of Accounting Information:- There are two categories:-
(1) Internal Management
(2) External uses or
Following are various uses:-
(1) Investors: They provide capital to business. They need
information to assess whether to buy, hold or sell their investment.
(2) Employees:- Growth of employee directly related to growth of
organization. So they require much information.
(3) Lenders:- They are interested to know capability of business to
repay principal and interest.
(4) Supplier and creditors :- They want to know ability of firm
to pay their dues. It is generally done by credit policy of concern.
(5) Customer;- Customers are also interested to know stability and
functioning of business.
(6) Government and their agencies :- They are also interested due to
various reasons like for allocation of scarce resources among competing
enterprises, tax rate, and collection.
(7) Public:- They are also interested in functioning of business since
they contribute substantially too many ways.
(8) Management as a whole is also
interested in the accounts for various managerial decisions.