Accounting is the art of recording, classifying and summarising in a significant
manner and in terms of money, transactions and events, which are, in part at least, of
a financial character, and interpreting the results thereof.
Objectives of Accounting:
(i) To maintain systematic record of business Transactions
(ii) To ascertain Profit or Loss
(iii) To determine Financial Position
(iv) To provide information to various users
(v) To assist the Management
Branches of Accounting: The main branches are:
(i) Financial Accounting: It deals with Maintenance of Books of Accounts to Determine Profitability and Financial
Position of the Business.
(ii) Cost Accounting: It deals with accounting which is concerned with controlling the cost of products manufactured or
services rendered.
(iii) Management Accounting: It deals with accounting which is concerned with decision-making process of
management.

Definition of Accounting:
Accounting can be defined as the systematic recording, analyzing, interpreting, and reporting of financial transactions and information of an organization. It involves the process of summarizing, classifying, and presenting financial data to help stakeholders make informed decisions.

Objectives of Accounting:
The objectives of accounting can be categorized into four main areas:

1. Recording Transactions: The primary objective of accounting is to accurately record all financial transactions of a business entity. This involves maintaining a systematic record of all inflows and outflows of cash, assets, liabilities, and equity.

2. Financial Reporting: Another objective of accounting is to prepare and present financial statements to provide relevant and reliable information to stakeholders. These financial statements include the income statement, balance sheet, and cash flow statement.

3. Decision Making: Accounting aims to provide financial information that assists in making informed decisions. This includes evaluating the financial performance, profitability, liquidity, and solvency of a business entity.

4. Compliance: Accounting helps ensure compliance with legal and regulatory requirements. It involves adhering to accounting standards, principles, and guidelines to maintain transparency and accountability.

Branches of Accounting:
Accounting can be broadly divided into four branches:

1. Financial Accounting: Financial accounting focuses on recording and reporting financial transactions of a business entity. It involves preparing financial statements for external users, such as investors, creditors, and regulatory authorities.

2. Management Accounting: Management accounting is concerned with providing financial information to internal stakeholders, primarily management. It focuses on budgeting, cost analysis, performance evaluation, and decision-making to enhance organizational efficiency and effectiveness.

3. Tax Accounting: Tax accounting deals with the preparation and submission of tax returns and ensuring compliance with tax laws and regulations. It involves calculating taxable income, determining tax liabilities, and maximizing tax benefits.

4. Auditing: Auditing involves examining and evaluating financial records, statements, and transactions to ensure accuracy, reliability, and compliance with accounting standards. It aims to provide an independent and objective assessment of an organization's financial information.

In conclusion, accounting is a vital function in any organization as it helps in recording, analyzing, interpreting, and reporting financial transactions. It serves multiple objectives, including recording transactions, financial reporting, decision making, and compliance. The branches of accounting, namely financial accounting, management accounting, tax accounting, and auditing, cater to different aspects of financial information and serve specific purposes.