Notesale: Turn your study into money

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FUNDAMENTALS OF ABM1 | Branches of Accounting
Philippine Normal University(PNU)
Understanding of the varied branches and areas of accounting
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These branches sometimes overlap and they are often
closely intertwined
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Financial accounting is primarily concerned with the recognition, measurement
and communication of economic activities
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It is assumed under this branch that the users have
one common information need
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In the Philippines, there is a Council
created to set these standards
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Although
financial accounting generally meets the needs of external
users, internal users of accounting information also use this information for their
decision-making needs
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The objective of managerial accounting is to
provide timely and relevant information for those internal users of accounting
information, such as the managers and employees in their decision-making needs
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Managerial accounting involves financial analysis, budgeting and forecasting, cost
analysis, evaluation of business decisions, and similar areas
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This branch
of accounting deals with how the funds of the government are recorded and reported
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External auditing refers
to the examination of financial statements by an independent CPA (Certified Public
Accountant) with the purpose of expressing an opinion as to fairness of presentation
and compliance with the generally accepted accounting principles (GAAP)
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Internal auditing deals with determining the operational efficiency of the company
regarding the protection of the company’s assets, accuracy and reliability of the
accounting data, and adherence to certain management policies
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Tax Accounting
Tax accounting helps clients follow rules set by tax authorities
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It also involves determination of income tax and other
taxes, tax advisory services such as ways to minimize taxes legally, evaluation of the
consequences of tax decisions, and other tax-related matters
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Cost accounting is very
useful in manufacturing businesses since they have the most complicated costing
process
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Cost accounting will also help the owner set the selling price of his products
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Accounting Education
This branch of accounting deals with developing future accountants by creating a
relevant accounting curriculum
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Accounting educators contribute to the development of the
profession through their effective teaching, publications of their research and
influencing students to pursue careers in accounting
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Accounting Research
Accounting research focuses on the search for new knowledge on the effects of economic
events on the process of summarizing, analyzing, verifying, and reporting standardized
financial information, and on the effects of reported information on economic events
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The subject matter of accounting research may include information systems,
auditing and assurance, corporate governance, financials, managerial, and tax
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Academic
accounting research "addresses all aspects of the accounting profession" using a
scientific method
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The Accounting research helps
standard-setting bodies around the world to develop new standards that will address
recent issues or trends in global business

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