Question

The word accounting can be classified into __________________.

• A. Financial accounting and management accounting
• B. Financial accounting and cost accounting
• C. Financial accounting, management accounting and cost accounting
• D. Cannot be classified

Answer 1

Answer: (C)

Financial accounting, management accounting and cost accounting

There are three main branches of accounting:

Financial Accounting : It is concerned with the recording and processing of all transactions.

Cost Accounting : It seeks to ascertain the cost of each product or job.

Management Accounting : It has the objective of collecting, systematically and regularly all such information as will help the management in decision making.