Enumerate various sub-fields of accounting

Various Sub-Fields of Accounting are:

ü Book-Keeping

ü Financial Accounting

ü Management Accounting and Cost Accounting

ü Social Responsibility Accounting

Book Keeping:

It covers procedural aspects of accounting work and embraces recording and classifying functions. Keeping subsidiary and principle books of accounts to record transactions and events as and when they occur, classifying into suitable account-headings form the subject matter of book keeping.

Financial Accounting:

Finalization of accounts, preparation of financial statements, communication of accounting information to the users and interpretation thereof are subject matter of financial accounting.

However, border line between book keeping and financial accounting is very thin. One can even ignore it and use the term financial accounting to mean the whole process. In fact, the term financial accounting is becoming more popular nowadays.

Management Accounting:

It emerged as an accounting sub-field only in the 20^th century. Management accounting shifted focus of accounting from recording and analyzing financial transactions to generating information for management decisions. R. N. Anthony gives a simple definition: “ Management Accounting is concerned with accounting information that is useful to management. It contributed significantly to the expansion of trade and commerce, more generally spreading of capitalism”. Charles T. Horngren nicely distinguished between financial accounting and management accounting. Financial accounting emphasizes the preparation of reports of an organization for external users whereas management accounting emphasizes the preparation of reports for its internal users.

Cost Accounting:

Cost accounting is a special wing of management Accounting I.C.M.A. London gives the following definition: “Cost Accounting is the application of accounting and cost principles, method and techniques in the ascertainment of costs and the analysis of savings and/or excesses as compared with previous experience”. Charles T. Horngren explained that cost accounting is generally indistinguishable from management accounting of managerial accounting.