Question

What are the three major divisions in the accounting field and what are the main functions of each?

Answer 1

There are three major divisions in the accounting field. They are financial, managerial, and public accounting (or auditing).

Financial accounting: This is the division of accounting that is concerned with producing financial statements for the organization. Note that it is primarily oriented toward external users (that is, people outside of the organization).

Managerial Accounting: This division supports managers within the organization. A wide variety of information is produced, such as costs, budgets, production rates, labor rates, prices, and so on.

Auditing, or public accounting: Many organizations have their financial statements reviewed by an independent third party. Public accounting firms and individual CPAs (certified public Accountants) are some of the examples.