INDIRA GANDHI KRISHI VISHWAVIDALAYA , RAIPUR

COLLEGE OF AGRICULTURE, RAIPUR

DEPARTMENT OF AGRI BUSINESS

MANAGEMENT
Session – 2021-22
Presentation On
Branches Of Accounting & Internal and External User of accounting

CourseTitle – Managerial Accountig & Control

Course Code - ABM 505
Credit – 2(1+1)

SUBMITTED TO:- Dr. A.K. GAURAHA(Prof.& Head ) SUBMITTED BY :- ABHISHEK PATEL

Deptt. of Agri. Business & Rural Management MBA(ABM) Pre. year, 1st Sem
 CONTENT

Serial No. Topic Page

1 What is Accounting

2 Objective Of Accounting

3 Branches of Accounting

4 Difference between
Managemeng & financial
Accounting
5 Internal & External Users
 WHAT IS ACCOUNTING ?

It is a systematic process of identifying, recording, measuring, classifying,

verifying, summarizing, interpreting and communicating financial information. 
OBJECTIVES OF ACCOUNTING

To maintain systematic accounting records. (Financial transactions, assets and Liabilities.

To ascertain financial performance. ( income statement)
To ascertain the financial position. (Balance sheet)
To communicate the information to the users ( cash budget reports, production reports)
Systematic Recording of Transactions
BRANCHES OF ACCOUNTING

1. FINANCIAL ACCOUNTING
2. COST ACCOUNTING- Control the cost and costing information
3. MANAGEMENT ACCOUNTING - All levels of management
4. Social Responsibility Accounting:- Social effects- Environment and ecology
1 Financial Accounting Determining the financial results for Stewardship Accounting
the period and the state of affairs on
the last day the accounting period.

2 Cost Accountin Information generation for Control accounting

Controlling operations with a view
to maximizing efficiency and profit.

3 Management Accounting Accounting to assist management in Decision accounting

planning and decision making
(a)Financial Accounting
• It is commonly termed as accounting. The american institute of certified public accountants defines
accounting as “an art of recoding, classifying and summarizing in a significant manner and in terms of
money, transactions and events which are in part at least of a financial character, and interpreting the results
thereof.”
(b)Cost Accounting
• According to the chartered institute of management accountants (CIMA), cost accountancy is defined as
“application of costing and cost accounting principles, methods and techniques to the science, art and
practice of cost control and the ascertainment of profitability as well as the presentation of information for
the purpose of managerial decision-making.”
(c)Management Accounting
• Management accounting is concerned with the use of financial and cost accounting information to managers
within organizations, to provide them with the basis in making informed business decisions that would
allow them to be better equipped in their management and control functions
 Management Accounting
1. Management Accounting is primarily based on the data
available from Financial Accounting.
2. It provides necessary information to the management to
assist them in the process of planning, controlling,
performance evaluation and decision making.
3. Reports prepared in Management Accounting are meant
for management and as per management requirement
4. Reports may contain both subjective and objective
figures
5. Reports are not subject to statutory audit.
6. It evaluates the sectional as well as the entire
performance of the business.
Financial Accounting
1. Financial Accounting is based on the monetary
transactions of the enterprise.
2. Its main focus is on recording and classifying monetary
transactions in the books of accounts and preparation of
financial statements at the end of every accounting period
3. Reports as per Financial Accounting are meant for the
management as well as for shareholders and creditors of
the concern.
4. Reports should always be supported by relevant figures
and it emphasizes on the objectivity of data.
5. Reports are always subject to statutory audit
6. It ascertains , evaluates and exhibits the financial
strength of the whole business.
 USERS OF ACCOUNTING

1. External Users of Accounting • Research Scholars

• Investors 2. Internal Users of Accounting
• Creditors • Owners
• Members of Non-Profit • Management
Organizations
• Employees
• Government
• Consumers
THANK-YOU