Which of the following is NOT a type of accounting commonly recognized in the field of financial accounting?

• A. Medical Accounting
• B. Financial Accounting
• C. Managerial Accounting
• D. Tax Accounting

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the types of accounting commonly recognized in the field of financial accounting. These include Financial Accounting, Managerial Accounting, and Tax Accounting. Each of these serves distinct purposes within the accounting profession.
2. Step 2: Financial Accounting focuses on preparing financial statements for external users, such as investors, creditors, and regulatory agencies. It adheres to standardized principles like GAAP or IFRS.
3. Step 3: Managerial Accounting is concerned with providing information to internal users, such as managers, to aid in decision-making, budgeting, and performance evaluation.
4. Step 4: Tax Accounting deals with preparing and filing tax returns, ensuring compliance with tax laws, and planning strategies to minimize tax liabilities.
5. Step 5: Medical Accounting is not a recognized type of accounting within the field of financial accounting. It is not a standard category and does not align with the core functions of financial, managerial, or tax accounting.