Sub-field of Accounting

              Sub-field of Accounting are as follows:


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 and owner

(2) External uses or outsiders


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.


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