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Accounting is the act of keeping records of a company’s financial activities. Journal entries are how the accountants compress the transactions. In bookkeeping, these entries are used. According to the rules set out by the auditors and other governing agencies, the accountants create the books of accounts. According to the best assignment experts, the following are the major branches of accounting:
- Financial accounting: The representations of all financial transactions that took place during a certain accounting period are included in the balance sheet, income statement, and cash flow statement. Financial accounting is the process of creating annual and quarterly financial statements. The majority of firms have independent CPA companies which audit their annual financial records. Audits are needed for some entities, such as publicly listed companies. Lenders often demand the yearly results of an external audit as part of their loan conditions. Therefore, for whatever reason, the majority of businesses will conduct yearly audits.
- Management accounting: A lot of the same data are used by both financial accounting and managerial accounting, but they are arranged and used in different ways. For clear ideas in managerial accounting, the accountant must create periodic reports. These managerial reports are taken into account when the management makes decisions. Managerial accounting has many more accounting features in addition to forecasting, budgeting, and many tools for financial analysis.
- Cost accounting: The study and reporting of an organization’s expenditure or cost structure is known as cost accounting. Cost accounting is a method of allocating & spending on goods, services, and any other activities that the organization engages in. Cost accounting is helpful because it can show where an organization is spending its money, how much it is raining, and where the money is being lost. The goal of cost accounting is to track, evaluate, and enhance the efficiency of internal spending controls.
A detailed record of a company’s financial management may be found in its journal of accounts. Because this is where transactions are originally recorded, it is also known as the book of original entries.
A ledger is an accounting book with debits and credits representing the categorized and summarised information from the journals. It also goes by the name of the second entry book. The ledger contains the data required to produce financial statements.
- Measurement: Account data is useful for assessing the company’s performance and financial health. It measures income, expenses, obligations, and assets.
- Forecasting: Ability to forecast on the basis of historical accounting data.
- Decision Making: Many decisions depend on accurate and timely information, which accounting provides.
- Evaluations: Accounting data is used to evaluate the performance and financial health of an organization.
- Control: A variety of accounting procedures, checks, and balances are used to regulate business activities.
There are many other universities that offer good opportunities. But below are top universities that offer excellent accounting courses, faculties, and campuses. Please take a reference from the list below if you want to enter your dream colleges.
- Harvard University
- Stanford University
- Massachusetts Institute of Technology (MIT)
- University of Oxford
- University of Chicago
- University of Cambridge
- The London School of Economics and Political Science (LSE)
- University of Pennsylvania
- The University of California, Berkeley (UCB)
- New York University (NYU)
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