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Discuss various kind of accounting: or Branch of accounting or subfields of accounting:

1. Financial accounting:

             Financial accounting is mainly confined to the preparation of financial statements for the use of outsiders like creditors, Banks and financial institution etc. the chief purpose of financial accounting is to calculate profit or loss and show financial position of the business.

2. Cost accounting:

Cost accounting is part of accounting which is concerned with the accumulation and assignment of cost to units of production and departments. It ascertains the cost of unit produced and sold. The process of cost accounting is based on the data provided by financial accounting.

3. Management accounting:

Management accounting is that part of accounting which is concern mainly with internal reporting to the managers of a business unit. It relates to planning, control and decision-making which is useful to the management in the discharges of its functions. Management accounting is “forward-looking” and generally includes cost accounting and budgeting.

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