Kerala Financial Corporation Assistant Expected Questions|Types of Accounting

Types of Accounting|Kerala Financial Corporation Assistant Expected Questions

  Exam Name: Kerala Financial Corporation Assistant

  Kerala PSC is conducting Kerala Financial Corporation Assistant Exam on 19 October 2019. Some Expected Questions on Accountancy are given below:

You can get the syllabus of Kerala Financial Corporation Assistant by clicking Here
 You can get the MCQ Questions set 1 HERE
Read the Accountancy Basic Questions HERE
Read What is Organization?
Read Why we need Accounting? Who are the users of Accounting?

Types of Accounting|Kerala Financial Corporation Assistant Expected Questions

The role of an accountant in generating accounting information is to observe, screen and recognize events and transactions to measure and process them, and thereby compile reports comprising accounting information that are communicated to the users. These are then interpreted, decoded and used by management and other user groups. 

It must be ensured that the information provided is relevant, adequate and reliable for decision-making. 

The apparently  divergent needs of internal and external users of accounting information have  resulted in the development of sub-disciplines within the accounting discipline  namely, 

1. financial accounting
2. cost accounting and 
3. management accounting 

Financial accounting assists in keeping a systematic record of financial transactions the preparation and presentation of financial reports in order to arrive at a measure of organizational success and financial soundness.

 It  relates to the past period, serves the stewardship function and is monetary in  nature. 

It is primarily concerned with the provision of financial information to  all stakeholders.

Cost accounting assists in analyzing the expenditure for ascertaining the cost of various products manufactured or services provided by the firm and the fixation of prices thereof. 

It also helps in controlling the costs and providing  necessary costing information to management for decision-making.

Management accounting deals with the provision of necessary accounting  information to people within the organization to enable them in decision-making,  planning and controlling business operations. 

Management accounting draws  the relevant information mainly from financial accounting and cost accounting  which helps the management in budgeting, assessing profitability, taking pricing  decisions, capital expenditure decisions and so on. 

Besides, it generates other information (quantitative and qualitative, financial and non-financial) which  relates to the future and is relevant for decision-making in the organization.

Such information includes; sales forecast, cash flows, purchase requirement,  manpower needs, environmental data about effects on air, water, land, natural  resources, flora, fauna, human health, social responsibilities, etc.

As a result, the scope of accounting has become so vast, that new areas  like human resource accounting, social accounting, responsibility accounting  have also gained prominence.

Also, Check; 

Kerala Financial Corporation Assistant Previous Questions Download pdf

What is Organization?

Read the Accountancy Basic Questions HERE

Why we need Accounting? Who are the users of Accounting?

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