Branches of Accounting


Branches of Accounting


Social the various branches of accounting are:

  • Accounting
  • Financial Accounting
  • Cost Accounting
  • Management Responsibility Accounting
  • Human Resources Accounting

Bases of Accounting


There are three bases of accounting in common usage, namely

  • Cash basis
  • Accrual or mercantile basis
  • Mixed or hybrid basis

1.Cash basis

  • Any income received
  • Any expenditure paid
  • Any asset purchased for which cash is paid
  • Any liability paid during the accounting period whether related to the past, present or future is taken into account.

2.Accrual or mercantile basis

  • Any income earned whether received or not
  • Any expenditure incurred whether paid or not
  • Any asset purchased whether cash is paid or not
  • Any liability incurred whether paid or not during
  • The accounting period is recorded

3.Hybrid or mixed basis

Under mixed basis of accounting, both cash basis and accrual basis are followed. Revenues and assets are generally corded on cash basis whereas expenses and liabilities are generally taken on accrual basis. This basis is a combination of cash basis and accrual basis of accounting.