3 Types Of Accounting Essay

The three major types of accounting information described by the authors of our text are Financial Accounting, Management Accounting, and Tax Accounting. (Williams, Haka, Bettner, Carcello, 5) Each type of accounting is focused to provide their intended users with specific information to be used in the decision-making processes. Of course, some information is more useful to certain people during specific times; the collective information detailed in the aforementioned categories will provide specific views of an organization and allow the decision makers to make fully informed decisions. Finical Accounting is a catch all, basic, general purpose form of accounting. It describes the overall activities of an organization including the organizations revenue, debt, and assets. (Williams, Haka, Bettner, Carcello 6) This type of all-purpose accounting is the aggregate used by investors, creditors, and as a building block for more specific types of accounting. (Williams, Haka, Bettner, Carcello 6) All users utilize this type of account information to determine if and where they decide to apply their resources. This could be an investor looking at an organization to weight the risk / benefit of investing. A creditor, like an investor, would use the information to decide if the

(Williams, Haka, Bettner, Carcello 6) While Management Accounting is, a more detailed segmented view of an organization designed to provide information to internal decision makers. (Williams, Haka, Bettner, Carcello 6) Tax Accounting specifically deals with the specialized are of taxes, just like every person has heard the old saying; the only two things that are guaranteed are death and taxes, businesses relay on Tax Accounting to avoid killing their business through poor tax preparation. (Williams, Haka, Bettner, Carcello