What is Accounting? Types

First of all, we will understand what is an accounting? Accounting is a numerical or numbers game, which accountants use for solving puzzles. Or you can say that mathematical equations solve out in an easy way.

Mainly accounting has 3 to 4 types, Two Main

1.     Financial Accounting

2.     Cost Accounting

3.     Tax Accounting

Financial Accounting

All about cash flow to the income statement and balance sheet principal with examples. In this category pure dealing with finance like debt, credit and cash flow regarding expense and profit.

The journal entry to inventory stats, from equity accounts to shareholders account, and other

Cost Accounting

Most difficult to understand category in accounting, here are some main categories of cost accounting is here below.

1.     Cost-Volume-Profit Analysis

2.     Constraint Analysis

3.     Cost Behavior                     

4.     Financial Ratio Analysis

5.     Receivables Turnover Ratio

6.     Capital Budgeting Analysis    

                 

Tax Accounting

Government to private sector use these for calculation tax system annually. These accounting type either use individual or merge in cost accounting principal. 

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