Following are the most popular types of accounting.
1. Financial Accounting: It is the original form of accounting. The main work of financial accounting is to prepare income statement i.e. profit and loss Account and the statement of the financial position i.e. Balance sheet.
A financial statement not only provides the overall operational result of the business but also furnish valuable information to the outsiders such as shareholders. creditors etc. The main objective of financial accounting is to ascertain profit earned during a year and financial position at the end of the year.
2. Cost Accounting: It is a specialized branch of accounting which involves classification, assignment and control of cost. The main purpose of cost accounting is to ascertain the cost of production to enable the management to Fix the price of the product and to ensure cost activities
3.ManagementAccounting: It is concerned "with accounting information which useful to the management in formulating Policies and control the business operations.
The main purpose of management accounting is to provide all the relevant information that'may be required by the management to take decisions. It is also concerned with the evaluation of the performance of the management as an institution.
4.TAX Accounting: The government imposes a number of taxes such as income tax, wealth tax, and gift-tax etc -A special branch' of accounting is.
adopted such a branch is known as tax accounting.
6. Social Accounting: Tins accounting system refers to the systematic recording of economic activities of a nation.
7. Inflation Accounting: Inflation Accounting is used to record price level changes and to adjust the values disclosed in the profit and loss A/c and Balance sheet.
8. Human Resource Accounting: These methods are applied to evaluate the human resources in money terms.
