Describe the branches of accounting.

Following are the three branches of accounting:

• Financial Accounting – It involves recording financial transactions, summarizing and interpreting them and communicating the results to the interested users. So it involves preparation of final accounts.
• Cost Accounting – It involves ascertaining the cost of production to enable the management fix the price of the product and to ensure cost reduction.
• Management Accounting – It is concerned with generating all the relevant accounting information, which enables the management in taking effective decisions for smooth running of the business.