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2. Cost Accounting:- It is that Subfield/Branch of accounting which is

concerned with ascertainment of total cost and per unit cost of goods or
services produced/ provided by a business firm.

3. Management Accounting:- It is that subfield/Branch of accounting which is
concerned with presenting the accounting information in such a manner
that help the management in planning and controlling the operations of a

business and in better decision making.

Qualitative Characteristics of Accounting Information

1. Reliability: Means the information must be based on facts and be verified
through source documents by anyone. It must be free from bias and errors.

2. Relevance: To be relevant, information must be available in time and must
influence the decisions of users by helping them to form prediction about
the outcomes.

3. Understandability: The information should be presented in such a manner
that users can understand it well.

4. Comparability: The information should be disclosed in such a manner that

it can be compared with previous year’s figures of business itself and other
firm’s data.

Explain the System of Accounting

Double-entry system

 The double entry system is based on the Dual Aspect Principle.

 Every transaction has two aspects, ‘a Debit’ and ‘a credit’ of an equal
amount.