topic 1 ( 2 bramches)

• The eight branches of accounting are: Financial Accounting, Management Accounting, Cost Accounting, Government Accounting, Auditing, Tax Accounting, Accounting Education, and Accounting Research.
• Financial Accounting is concerned with preparing financial reports for external users such as creditors, stockholders, and governments, and follows the generally accepted principles or accounting standards set by regulatory bodies like PFRS.
• Management Accounting provides useful information that helps stakeholders make informed decisions concerning day-to-day operations and business direction and does not necessarily adhere to the PFRS.
• Cost Accounting is concerned with recording and analyzing the costs for producing goods or services, providing information that is useful in making decisions concerning the production of a business or an organization.
• Government Accounting deals with how the government apportions and spends the financial resources, involving the presentation of where the government funds come from and how funds are spent.
• Auditing is concerned with verifying the correctness of financial reports, involves evaluation based on established criteria, and raises the credibility of an organization.
• External auditing is performed by someone outside the reporting entity, ensures fairness and compliance of financial reports.
• Internal auditing is performed by someone who works for the reporting entity, checks the validity of accounting records, discovers operational inefficiencies, and identifies weaknesses in the internal control measures implemented by a business.
• Tax Accounting covers everything tax-related: computation of different kinds of taxes, preparation of tax returns, assessment of the repercussions of tax decisions.
• Tax avoidance is the process of reducing tax in compliance with tax laws and is a legitimate practice.
• Tax evasion is the act of omitting sources of income on taxable transactions, intentional non-payment of tax, and is illegal and may be subject to imprisonment.
• Accounting Education helps the education sector in coming up with a curriculum to help aspiring accountants be equipped with relevant accounting knowledge and skills.
• Accounting Research centers on the pursuit of current and relevant information in the field of accounting, can help a particular clientele solve problems concerning its business, can help regulatory bodies amend existing accounting principles, and can help develop new accounting standards to address issues and trends in accounting practices.