Which type of accounting is primarily concerned with recording and managing the financial transactions of banks and other financial institutions?

• A. Bank accounting
• B. Tax accounting
• C. Managerial accounting
• D. Cost accounting

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the different types of accounting mentioned in the problem. Bank accounting focuses on recording and managing financial transactions specific to banks and financial institutions. Tax accounting deals with compliance and preparation of tax returns. Managerial accounting provides information for internal decision-making. Cost accounting focuses on analyzing costs for production and operations.
2. Step 2: Identify the key requirement of the problem, which is to determine the type of accounting concerned with financial transactions of banks and financial institutions.
3. Step 3: Match the definition of each accounting type to the requirement. Bank accounting is specifically designed to handle the financial transactions and operations of banks and financial institutions.
4. Step 4: Eliminate the other options based on their definitions. Tax accounting, managerial accounting, and cost accounting do not primarily focus on the financial transactions of banks and financial institutions.
5. Step 5: Conclude that the correct answer is 'Bank accounting,' as it directly aligns with the problem's requirement.