3. Finance Accounting
• Financial accounting is concerned with the
summary, analysis and reporting of financial
transactions pertaining to a business.
• This involves the preparation of financial
statements available for public consumption.
• Stockholders, suppliers, banks, employees, gove
rnment agencies, business owners, and
other stakeholders are examples of people
interested in receiving such information for
decision making purposes.
4. • Financial accounting research Examines financial
accounting and the financial markets, and focuses on the
relationship between accounting information and the
decision-making of external users of the accounting
information in the capital markets.
• Decision
- Investment decision
- Financing Decision
- Dividend Decision
5. Management Accounting
• Accounting information in order to better inform before decide
matters within their organizations, which aids their management
and performance of control functions.
• Focuses on the relationship between accounting information
and internal users of the accounting information.
• for example examining the allocation of resources and
decision-making within an enterprise.
• Examine issues regarding budgeting, compensation, decision-
making within an enterprise, incentives, and the allocation of
resources within an enterprise.
6. Taxation research
• Examines taxation-related issues such as market reactions
to tax disclosures and taxpayer decision-making,and the
relationship between accounting information and tax
authorities.
• Studies that examine issues related to taxpayer decision-
making, tax allocations, tax computations, structuring of
accounting transactions to meet tax goals, tax incentives, or
market reactions to tax disclosures.
7. Costing
• Cost accounting is a process of collecting, recording,
classifying, analyzing, summarizing, allocating and
evaluating various alternative courses of action & control of
costs.
• Its goal is to advise the management on the most
appropriate course of action based on the cost efficiency
and capability.
• Cost accounting provides the detailed cost information that
management needs to control current operations and plan
for the future.
