there are two types of accounting. They are as follow:
1) financial accounting- financial accounting deal with recording, classifying, summerising, and interpreting the financial data. financial accounting is mandatory according the legal purpose. It is also useful for the external purpose like for shareholders, investors, prospective investors. In most of the country the procedure is followed for accounting is GAAP (General Accepted Accounting Principal). GAAP provides the proper guideline for the financial accounting.
2) Management Accounting - Management Accounting is prepare for the help of manager to take the decision. It is based on the past data and estimated data. It help managers for taking the remedy action and future solutions.
