There are seven branches of accounting:-
a) Financial Accounting: This is called original accounting, which is mainly confined to the preparation of financial statement for the various concern parties and financial institutions.
b) Cost Accounting: The process of accounting for cost which begins with the recording of income and expenditure or the bases on which they are calculated and ends with the preparation of periodicals statements and reports for ascertaining and controlling cost.
c) Management Accounting: Management accounting is a distinctive form of resource management which facilitates management’s ‘decision making’ by producing information for managers within organization.
d) Inflation Accounting: This accounting system do not consider the cost constant at every time because the price of a commodity change with time to inflation and decline purchasing power of money.
e) Social Accounting: This deals with the application of double entry system of book keeping to socio-economic analysis at the preparation, estimation and interpretation of nation and international income and balance sheet.
f) Value –Added Accounting: In this system income is measured by the value added by a firm in a particular period. It is the difference between the value of the product and the cost of raw material, stores and any brought out component used for production.
g) Human Resource Accounting: Human Resource accounting is the measurement of the cost and value of people for the organization or it is the process of identifying and measuring data about human resources and communicating this information to interested parties.