Topic No.

Branches of
Accounting
1. Differentiate branches of accounting LEARNING
2. Explain the kind/type of services rendered in
each of these branches
TARGET
 Major Accounting Fields

Government
Industry /
Public and Not for Research and
Private
Accounting Profit Education
Accounting
Accounting
Public Accounting
A field open to firms and individual CPAs who offers to
the public, for a fee, expert services like bookkeeping,
auditing, accounting, tax and financial planning.
 Public Accounting

Auditor
licensed to make an independent examination or
review of the financial records of the firm and
renders an opinion as to the fairness of
presentation of the firm's financial statements.
Tax Consultant
skilled in preparing tax returns in giving advice
concerning tax consequences on economic or
financial decisions made by a taxpayer.

Management Consultant
advices management on many delicate issues such as analysis, design,
review and installation of an accounting information system, financial
planning, profit planning, operation and cost controls.
Industry or Private Accounting
Private accountants are considered internal
accountants. They work for a single company and help
deal with the financial information of that company.
They prepare and analyze reports for an internal
manager.
 Private Accounting
Bookkeeper
a person with knowledge of accounting who does
the routine work of recording, classifying and
summarizing of accounting information.
Internal Auditor
an accountant who assists in the maintenance of
the organization's internal control
Controller
the overall in-charge of all accounting activities
and functions as the chief accounting officer (CAO)
of the corporation whose work includes both
financial accounting and management accounting.
Budget Officer
prepares plans and forecasts of the company's
future operation.
 Government and Not for Profit
Accounting
An accounting field where one works as accountant,
auditor, budget officer or electronic data processing
head of any of the government agencies, religious
organizations, labor unions, colleges and universities,
trade associations and many others.

Exa mples of governm en t a gen cies are the followin g:

• Commis s ion on Au dit (COA)
• Bu rea u of In tern al Reven ue (BIR)
• Ba n gk o Sen tral ng P ilipin as (BSP)
• Govern m en t Servic e an d In sura nc e Sys tem (GSIS)
• Bu rea u of Cu stom (BOC)
• Etc.
Research and Education
Another accounting field where the accountant
assumes the role of researcher, teacher, and reviewer.
 Branches of Accounting
Financial Accounting

Management A ccounting

Tax Accounting
Auditing
Government Accounting
Cost Accounting

Accounting Education

Accounting Research
Financial Accounting
involves the preparation and interpretation of
financial statements primarily intended for
external users.

• Statem ent of Financial Position or Balance Sheet

• Statem ent of Financial Perf orma nc e or I ncome S tatement
• Statem ent of Owner’s Eq ui ty
• Statem ent of Cash Flows
Management Accounting
deals with financial and non-financial information
primarily for managers and other internal users to assist
them in planning, directing, and controlling the affairs of
the business.
Tax Accounting
involves preparation of tax returns, interpretations, and
application of tax rules in the determination of tax
liability, analyzing tax effect on firm's or individual's
projects or plans.
Government Accounting
deals with the administration or use of public or
community funds to bring about service to the people.
Auditing
deals with the independent verification and examination
of the accounting records for the purpose of giving
credibility to the financial statements.
Cost Accounting
deals with recording, classifying, and summarizing the
details of materials, labor and overhead necessary to
produce and sell a product or service.
Accounting Education
teaches students and prepares them for the CPA board
exams. Subjects such as accounting, auditing,
management advisory services, finance, financial
management, business law, taxation are usually handled
by accounting professors.
Accounting Research
deals with creating, applying, relating, or improving
accounting theories and business concepts that will
address the current problems/changes in a particular
business or industry sector.
Questions?

?
Learning
Exercises
 I. Identify which branch of accounting is being described:

_______ 1. Branch of accounting that is concerned primarily with the provision of information
for internal users.
_______ 2. The traditional service rendered by CPAs in public practice that shows
independency and ensures fairness of presentation of financial statements.
_______ 3. Primarily concerned with historical financial information regarding performance,
position, structure, and compliance with legal and regulatory requirements.
_______ 4. Teaches students and prepares them for the CPA board exams.
_______ 5. Its objective is more on how the funds are used to service the people rather than
to earn profit.
II. Identify the career opportunities described by the different tasks given below:

_______ 1. Does the procedural aspects of recording, posting, footing, cross-footing,

preparation of schedules and reports.
_______ 2. Examines records and reports to ensure that these are fairly presented in
accordance with generally accepted accounting principles.
_______ 3. Prepares reports submitted to the BIR and who advises clients on the impact of
taxes on financial and economic decisions made.
_______ 4. Determines product or service cost, the right price for the desired profit margin.
_______ 5. Responsible for accounting, tax, budgeting, internal audit, system design and
internal control.
_______ 6. Makes a study and gives recommendations regarding decision making problems
such as retaining or dropping a product, buy or make, process further before
selling, merger possibility and feasibility, to name a few.
_______ 7. Assists students in their accounting, tax, finance, and auditing courses.
Assignment:
Identify one form of business
organization and give an
example. (For the next
lesson)
 > Users of Accounting
Information

> Forms of Business

Organizations

> Types of Business According

to Activities