Branches of Accounting :

Accounting has three main forms or branches viz. financial accounting, cost accounting and management accounting.

(i) Financial Accounting: It is concerned with record-keeping directed towards the preparation of trial balance, profit and loss account and balance sheet.

(ii) Cost Accounting: Cost accounting is the process of accounting for costs. It is a systematic procedure for determining the unit cost of output produced or services rendered. The main functions of cost accounting are to ascertain the cost of a product and to help the management in the control of cost.

(iii) Management Accounting: Management accounting is primarily concerned with the supply of information which is useful to the management in decision-making, increasing efficiency of business and maximizing profits.