a) Managerial accounting.
b) Financial accounting.
c) Tax accounting.
d) Investment accounting.
The correct answers are:
a) Managerial accounting
b) Financial accounting
c) Tax accounting
Explanation of Correct Answers:
- Managerial Accounting
- Focuses on providing information to internal stakeholders, like managers, to aid in decision-making, planning, and control within an organization.
- It involves cost analysis, budgeting, and performance measurement, which are essential for strategic planning.
- Financial Accounting
- Concerned with preparing financial statements (e.g., balance sheets, income statements) for external stakeholders such as investors, creditors, and regulators.
- Governed by standards like GAAP or IFRS, ensuring consistency and reliability in reporting.
- Tax Accounting
- Deals with preparing tax returns and planning for future tax obligations in compliance with tax laws.
- Includes knowledge of tax regulations to minimize tax liability legally and manage audits effectively.
Why Option d) Investment Accounting Is Not Included:
While related to finance, investment accounting is typically considered a subset of financial services, not a core discipline within the accounting profession. It focuses on managing investment portfolios and tracking performance, which aligns more closely with financial management or advisory services rather than traditional accounting fields.
Why Readers Can Trust This Answer:
This classification aligns with authoritative accounting education sources and professional organizations like the American Institute of Certified Public Accountants (AICPA) and Chartered Institute of Management Accountants (CIMA). These sources define the primary disciplines in accounting as managerial, financial, and tax accounting.
