Which of the following are the broad categories of accounting most commonly recognized in the United States?

• A. Governmental accounting and project accounting
• B. Tax accounting and forensic accounting
• C. Financial accounting and managerial accounting
• D. Cost accounting and auditing

Answer: (C)

Verified step by step guidance

1. Understand the context of the question: The problem is asking about the broad categories of accounting most commonly recognized in the United States. This requires knowledge of the primary branches of accounting.
2. Review the definitions of each category mentioned: Financial accounting focuses on preparing financial statements for external users, while managerial accounting is concerned with providing information for internal decision-making.
3. Compare the other options provided: Governmental accounting deals with public sector finances, project accounting tracks costs for specific projects, tax accounting focuses on compliance with tax laws, forensic accounting investigates financial discrepancies, cost accounting analyzes costs for production, and auditing examines financial records for accuracy.
4. Identify the most widely recognized categories: Financial accounting and managerial accounting are the two broad categories that encompass the majority of accounting practices in the United States.
5. Conclude that the correct answer is Financial accounting and managerial accounting, as these are the most commonly recognized and broadly applicable categories in the field of accounting.