CHAPTER III

BRANCHES OF ACCOUNTING AND USERS OF ACCOUNTING INFORMATION

Financial Accounting Deals with financial transactions of a business

Management Accounting Focuses on the preparation of reports for use of

managers in their decision making

Tax Accounting Lays down the different treatments of the taxing

authorities regarding financial transactions

Not-for-profit Accounting Used for government agencies, churches,

nongovernment organizations, charitable
institutions and schools

A. External
1. Investors
2. Employees
3. Lenders
4. Suppliers and other trade creditors
5. Customers
6. Governments and their agencies
7. Public
B. Internal

Professional Values and Ethics of Accountants

 Integrity
 Objectivity
 Professional competence and due care
 Confidentiality
 Professional behavior
 Compliance with technical standards

Bookkeeping
Process of recording financial transactions and keeping financial records

Accounting
Includes the design of an information system that meets the user’s needs

Sources: Fundamentals of Accountancy, Business and Management – Joselito G. Florendo

Financial Accounting and Reporting – E.B. Cabrera; G.A. Cabrera