Accounting Theory(Introduction of Accounting, Types of accounting)

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This page will help you for Accounting Theory.
So from the begging,(1):-What is Accounting?
Accounting Theory(Introduction of Accounting, Types of accounting




---So,Accounting is an art of recording,  Classifying and summarising the business transaction in a proper and systematic way.So,the proper results of the transaction can be obtain.

(2):-Types of Accounting.
---So,There are several  branches of  accounting.
                             -Financial Accounting
                             -Cost Accounting.
                             -Management Accounting. 
Accounting Theory(Introduction of Accounting, Types of accounting

                             
--Financail Accounting:-It is a branch of accounting which deals with past transaction of the business or concern.It is historical in nature and show only past transaction.It is helpful for preparing Financial Statement of the concern.

--Cost Accounting:- It is the branch of accounting which deals with the cost of the product and material and services.It record the the expenditure in an objective manner.

--Management Accounting:-It is also a branch of accounting which is concerned with internal reporting to the management of the business unit.The different way of grouping the information and preparing reports as desired  by managers for discharging their functions are referred to as management accounting.  

(2) What  is Transaction?
---so,Transaction is a external event which is measure in terms of money and effect the Financial Statement of the business.
TransactionaFor example:-Purcahse of Machinery,Rent paid,Salary paid,Expenses on Maintianence etc.
(3):-What is Event?
---So,Event is  an occurance,happening,change or incident which may or may not bring change in the Financial Statement in the business.For example:-Labour strick,Change in the price of the product etc. 
(4):--What are the Function of Accounting?
--so,1.Manage the resources held by the specific entities.
        2.Prepare Financial statement of the business entity.
       3.Measure the change in those resources and claim.

Location: West Bengal, India

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