Types of accounting



Accounting can be classified into two branches, depending on the division criteria used. According to the type of economic unit to which the generated accounting information refers, the following classification can be made:
Macrocontabilidad 
Main article: National accounts
National accounting provides systematic numerical representation of a country's economic activity over a given period. It is elaborated by the States, it provides useful information that guides the economic policy of the country.
Microcontabilidad 
It is the accounting of small economic units. Its purpose is to provide information that will be used in decision-making. Within micro-accountability, public accounting, executed by different public administrations and private, business-oriented accounting, is distinguished.
Within business accounting, users of accounting information can be divided into internal and external users. The internal user group comprises all those persons or bodies that use the information from within the company for the appropriate decision making in the direction of the same. On the other hand, external users use accounting for the management of the company that is the subject of the information, and include all entities that do not participate in management, such as shareholders, creditors, lenders, clients, investors, employees and public administration , Especially the tax administration, and who basically need the accounting information to also make decisions and control the company from multiple points of view.
  1. Financial accounting (external): provides the essential information on the operation and financial status of the company to all interested economic agents (clients, investors, suppliers, public administrations, etc.). The legislation of most countries regulates the rules of financial accounting to homogenize the resulting information and give it greater reliability and comparability. Financial accounting usually has little detail because it contains very aggregated information.
  2. Accounting management or accounting (internal): which encompasses cost accounting . It is the accounting developed with an internal purpose or self-consumption in the company itself and is used for the calculation of costs, economic and productive states within the company that will serve to make decisions regarding production, organization, marketing, etc. . It is characterized by being more flexible, since it is based on self-regulation, is subject only to standards that self-imposed the company and not to legal regulations, is usually more detailed than financial accounting and is also more immediate than this, because Must serve for very close decisions. On the other hand,

Comments

Post a Comment

Popular posts from this blog

Medieval period

The more or less developed accounting practices common in the ancient world disappeared because of the almost complete extinction of trade in Europe in the centuries after the fall of the Roman Empire . The accounting had to be developed starting from zero, especially to the time of the commercial boom, that had its first great impulse with the Crusades . Two great military orders , that of the Templar and that of the Teutonic Knights , developed during the twelfth and thirteenth centuries improved accounting systems, probably influenced by the practices of the Lebanese merchants with whom both orders had contact in their beginnings . The Teutonic knights transferred their activity to the Baltic regions and there maintained contact with the commercial cities of the Pancreatic League . This League developed prophecy "factor accounting", that is, that of the commission agent who is accountable to his principal . While the Italian merchants presented more attention to...
Keep reading

Accounting

Accounting is a branch of the Public Accountancy that is responsible for quantifying, measuring and analyzing the economic reality, the operations of organizations , in order to facilitate management and control by presenting the information , previously recorded, in a systematic and orderly manner For different stakeholders. Within the accounting records transactions, internal changes or any other event that economically affects an entity are recorded. Rise school is Best School of Accountancy in Lahore.CA admissions in Lahore now open. The best School of Accountancy in Pakistan offers CA in Lahore and Best CA in Pakistan. The purpose of accounting is to provide information on a given results obtained time during a period of time , which is useful to its users, decision-making, both for the control of management last, as estimates The future results, endowing such decisions with rationality and efficiency . Accounting is currently regulated by two agencies to preven...
Keep reading

Origin of the double item

Rise school is Best School of Accountancy in Lahore.CA admissions in Lahore now open. The best School of Accountancy in Pakistan offers CA in Lahore and Best CA in Pakistan. The double entry probably originated in the region of Tuscany before the end of the thirteenth century , the earliest example of its use are the public accounts of the city of Genoa in 1340 . 9 In the fifteenth century , it seems that the bankers and traders Tuscan possessed a highly developed or more than that used by the Venetians, and different in some important points of these accounting technique. Nevertheless it was the accounting to the Venetian that imposed, thanks to the printing press , that allowed its diffusion before any other. The Renaissance In the Renaissance , the emergence of the concept of productive capital and the development of credit, laid the necessary foundations for the development of an accounting system. First comes the accounts that reflected the credits and debits of the...
Keep reading