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In accounting the financial report is based on consumer receptiveness. In maximum cases accountants use generally accepted Accounting principles (GAAP) at the time of preparing financial statements. GAAP is related to balance sheet identification, sharing measurements and many accounting related issues. There are different fields of accounting those are

Financial Accounting: It can handle bank reconciliation, taxation, financial statements, and many more. In financial accounting money is taken as the company's economic performance.

Managerial Accounting: It is responsible for management unlike the financial accounting. It is used to keep the information about cost of products purchased by the company. Managerial accounting is also known as cost accounting.

Corporate Accounting: It is a branch of accounting which can keep information and for preparing cash flow statement for companies. Corporate accounting is used to the operations for a single firm or company.

International Accounting: It is focused on using accounting standards which is developed by US companies. The AIS or accounting information system provides management with the useful information to aid in informed financial decision making.

The concepts of Accounting 

They are the regulations which govern the accounting profession. Where they conflict the users and preparers of Accounting statements can agree on methods of accounting to use. 

Money measurement concept -  record transactions which can be quantified in monetary terms

Accrual concept - income must be recorded in the accounting statements in the year in which the services for the prepaid income are realized. Accrued incomes must be recorded in the accounts in the period they are occurring rather than when they will be realized.

Duality aspect concept - requires that each transaction is recorded twice, one entry on the debit and the other on the credit side of the ledger accounts. Debit is the part of the transaction which decreases liability, capital (equity) and profits and increases expenses and assets.

Matching concept - Expenses incurred is recorded in the statement for the period in which the revenues matching to those expenses relate.

Accounting period concept - This is the period of operation of the business which is usually one year and does not have to coincide with the calendar year

Realization concept - under this concept revenue is recognized and recorded in the accounting statements in the period it is earned regardless of when it is realized.

Accounting Information System

An accounting information system is a computer aided method of collecting and processing accounting data necessary for providing Accounting information to end users. An accounting information system consists of data, systems, procedures and processes, hardware and software applications and people.

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