What are the types of accounting?

Answer 1

There are three major classes of accounts that can be broken down into individual accounts: transactional banking accounts, credit accounts, and investment accounts. Note that not all banks have all three, but those are the main classes.

The main class of accounts banks offer are transactional accounts, usually just called banking accounts. These include savings accounts and checking accounts. Money usually flows between these accounts and other accounts outside the bank, and can either be interest-bearing or non-bearing depending on your banks terms. This last bit refers to whether the account pays interest or not- typically, savings accounts do pay interest while many checking accounts pay no interest.

The second class of accounts are the credit accounts, which include loans, mortgages, and credit cards. When applying for a Mortgage or other loan you work with a bank's loan officer who looks up your credit score, while a centralized credit department handles decisions regarding credit cards.

The third class are investment accounts, which include retirement accounts, brokerage accounts, and Certificates of Deposit. Certificates of Deposit, or CDs, are similar to savings accounts, yet the customer cannot take money out without paying penalty fees. therefore, this should be seen as an investment. The other types, retirement accounts (typically IRA's) and brokerage accounts act similar to each other: you put money into the account, choose some stock or let an agent pick for you, and let it sit there. An IRA is usually a "set and forget" style account with occasional tweaks, while those that hold brokerage accounts tend to want more control over their money and assets...

Answer 2

Financial: Used to report on the company to outside people (investors, potential buyers, etc)

Managerial: Used to report to the managers of the company to help make better decisions. (These reports are not provided to investors, potential buyers, etc).

Answer 3

Accountants may be certified or non-certified. They can also be an employee of the company or an outside firm. One can be considered a Certified Public Accountant if some qualifications like a certain education or experience is met and has passed the CPA examination.