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Accounting: What are the branches, uses, and limitations of financial accounting?

Accounting vs. article source Book-keeping concerns itself with the recording (correctly and in a set of books) of those transactions that result in the transfer of money or money’s worth. Accounting, however, has a broad scope. Accounting encompasses the collection, summarizing, presentation, and analysis of accounting information.

Accounting vs. Accountancy

Accounting is the accumulation of knowledge. Accounting can include postulates and assumptions as well principles and concepts. Accounting is both the science and practice of accounting. There are many branches. Financial Accounting. The objective of financial accounting is to analyze the results (profit/loss) and report the financial situation (Balance sheet), as it stands at a given date.

Cost Accounting

It helps companies manage their expenses by identifying unnecessary losses and wastes. It allows businesses to identify potential losses or wastes and helps them manage their expenses. These are the goals of financial accounting. You can achieve them by recording financial transactions following a set of principles. It is important to categorize, analyze and present the data so that financial results and financial position can be easily determined.


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