What is Financial accounting and Cost accounting?

       Definition of Financial Accounting

Financial accounting : Financial accounting refers to the accounting concerned with recording financial data of an organisation, in order to exhibit exact position of the business.Financial accounting ascertains the financial results, for the accounting period and the position of the assets and liabilities on the last day of the period. 

Financial Accounting is the branch of accounting, which keeps the complete record of all monetary transactions of the entity and reports them at the end of the financial period in proper formats that increases readability of the financial statements among its users. The users of financial information are many i.e. from internal management to outside parties.

Definition of Cost Accounting

Cost Accounting :Cost accounting refers to that branch of accounting which deals with costs incurred in the production of units of an organisation. Cost accounting generates information so as to keep a check on operations, with an aim of maximizing profit and efficiency of the concern. 

Cost Accounting is the field of accounting that is used to record, summarise and report the cost information on a periodical basis. Its primary function is to ascertain and control costs. It helps the users of cost data to make decisions regarding the determination of selling price, controlling costs, projecting plans and actions, efficiency measurement of the labour, etc.

I think I have covered the topic with best of my experiences but as it is a vast topic may other experts have different views!

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I, Me & Myself

I am MUSTAJAAB SHUJAAT, from India (Kolkata). My highest qualification is Masters in Commerce, being a student of commerce having strong command in Accounting and Marketing intelligence. I am a self-motivated, creative mind and hard working girl with positive attitude towards my career and my life.

It is one of the fastest growing platform where lots of people share their knowledge with us. I have a good opportunity to show my talents in this blogging Fields.So, I am really very excited to share my knowledge and experience what ever I have learned in my life. I Will put my all efforts for the good and useful topics.

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• Financial Management                          
• Statistics
• Taxation
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What do You mean by Accounting? Discuss the basic Concepts of Accounting.

Definition Of Accounting

Accounting is the systematic recording, reporting, and analysing the financial transactions of any person, business, or organisation. It helps to find the organisations profitable statements.

In other words, Accounting is one of the most important aspects of business and is required to know the business performance. It helps us to ascertain the profit and financial position of a business or an organisation.

According to the American Institute of certified public accountants " Accounting is the art of recording , classifying , summarising in a significant manner and in terms of money 💰 transactions and events which are in parts at least of financial character and interpreting the results thereof."

 Concepts of Accounting:

There are many concepts of accounting are as follows below:

1. Business entity concept
2. Going concern concept
3. Measurements of money concept
4. Dual aspect concept
5. Cost concept
6. Matching concept
7. Accounting year concept

1. Business entity concept: In this concept, a business and it's owner should be treated separately as far as their financial transactions are concerned.
2. Going concern concept: In this concept, a business is expected to continue for a long time and carry out its obligations.
3. Measurements of money concept: In this concept, only business transactions that can be expressed in terms of money are recorded in accounting may be kept separately.
4. Dual aspect concept: In this concept, a corresponding debit transaction is made for each and every credit. So, the recording of a transaction is complete only the basis of dual aspect concept.
5. Cost concept: In this concept, the fixed assets of any organisation or business are recorded on the basis of their original cost in the 1st year of accounting. Eventually, these assets are recorded minus depreciation. That means; no rise or fall the value of assets in market price is taken into account. This concept is applies only to fixed assets.
6. Matching concept: Matching concept instruct that for each and every entry of revenue recorded for correctly calculating profit and loss in a given period.
7. Accounting year concept: In this concept, every business or organisation chooses a specific time period to complete the accounting process. Such as Financial year or Calendar year.

              So, I think I have covered the topic with best of my experiences but as it is a vast topic may other experts have different views! 

Disclaimer: All the images used in this blog is only for representation purpose!

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