First chapter to accounting:
Accounting means a systematic and a comprehensive and complete recording of the financial transactions that are a part of any organisation which also refers to the process of reporting, analysing and summarization of these transactions. In other words, the financial statement that provides the record of cash inflow and cash outflow in large organisations and provides a complete summary of all the operations that took place in the organisation in a given period is termed as the process of accounting. Like other streams accounting can also be classified and divided under several fields for a better understanding:
- Financial accounting: financial accounting is that field of accounting that describes all the financial transactions the cash inflow and cash outflow in any organisations. The payments investment in resources machinery payment of salaries all falls under financial accounting.
- Management accounting: management accounting which is also known as managerial accounting is that field where the managers use typically the provision of the information about accounting in order to have a proper knowledge about it before presenting an idea and having any discussion before the organisation which adds to aids of their managerial performance and have a precise and full control over the functions that they perform for the organisation of management accounting.
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