Thursday, March 25, 2010

Specialized Accounting Fields

As in may other areas of human activity in the twentieth century, a number of specialized fields in accounting have evolved This tendency towards specialization has been caused in larges measure by growth in size of business units, mounting taxes and increasing regulation of business by lay and by governmental agencies. These influences, together with rapid technological advances and accelerated economic growth, have created the need for accountants to acquire high degree of expertness in various specialties. The term financial accounting or general accounting applies to the overall accounting for an economic unit. It is concerned with the recoding of transactions for a business for other economic unit and the periodic and special purpose reports and statements prepared from the accounting records are used to impart useful information to managers, owner, creditors, governmental agencies and the public. The accounting principles and techniques that will be developed in this book are in large part included in financial accounting.Auditing Auditing is classified under two head: external auditing and internal auditing. External auditing service is rendered by practicing accountants as required by law. These accountants examine the accounts and supporting records and express an opinion regarding the fairness and accuracy of the Balance Sheet and the Profit and loss Account. Internal auditors, as their name implies, are generally employed by large companies from amount their own staff. One of the most important duties of internal auditors is to determine the extent to which the various operating divisions observer the policies and procedures prescribed by management.

Cost Accounting

Cost accounting emphasizes the determination and the control of costs. It is concerned primarily with the cost of manufacturing processes and of manufactured products, but increasing attention is being given to selling and distribution cost. In addition, one of the principal functions of the cost accountant is to assemble and interpret cost data, both actual and prospective, for the use of management in controlling current operations an din planning for the future.

Management Accounting

Management accounting employs both historical and estimated daqta in assisting management in day-to-day operations and in planning future operations. It deals with specific problems that confront enterprise managers at various organizational levels. The management accountant is frequently concerned with identifying alternative courses of action and then helping to select the best one. For example, he may assist the finance manager of the company in preparing planning for future financing or he may develop data for the use of the sales manager in determining the selling price to be placed on a new product. In recent years, accountants have come to realize that their training and experience uniquely qualify them to advise management on policies and administration even in matters which might seem to have little relationship to accounting.

Tax accounting

Tax accounting encompasses the preparation of tax returns and the consideration of the tax consequences of proposed business transactions or alternative courses of action. Accountants specializing in this field must be familiar with the tax laws affecting their employer or clients and also must keep up-to-day on charges in tax laws, administrative regulations and court decisions on tax cases.

Accounting System

Accounting system is the special field concerned with the creation of procedures for the accumulation and reporting of financial data. The systems accountant must devise appropriate accounting procedures to safeguard business assets and, to the fullest possible extent, provide for information flow that will be helpful to management. It is essential that he also be knowledgeable about the uses and relative merits of available mechanical and electronic data processing equipment.

Budgetary Accounting

Budgetary accounting presents the plan of financial operations for a period and, through accounts and summaries, provides comparisons of actual operations with the predetermined plan. It is a combination of planning, coordinating, and controlling future operation.Government AccountingGovernment accounting specializes in controlling the expenditure of public funds in accordance with statutory requirements. It also seeks to provide useful accounting information regarding the business aspects of public administration. There is some overlapping among the various specialized fields, and leaders in any particular field are likely to be will versed in related areas. There is also a considerable degree of specializations within the particular specialties. For example, within the field of auditing, one may become an expert in a particular classification such as oil distribution, banking, insurance and public utilities. In tax accounting one may specialize in the problem of oil and gas producing companies; or in systems one may become an expert in electronic data processing equipment.HDMI (2 meter) 6 foot cable HQ 1080P 1.3b


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