Financial Accounting

Accounting
Concept &
Convention
 DISCUSSIONS ON

 Theoretical concepts of Accounting

 Significance of Accounting
 Accounting Policies
 Proposed statement of recognition of revenue
 Accounting concepts & convention
 Double-
Double-Entry Book keeping system
 Theoretical Concepts of
Accounting

What is Accounting ?
= Counting an Action
What is an Account ?
= Action + Count
What is a transaction ?
= Counting an action or an event in
terms of money
Formal Definition of Accounting

 The American Institute of Certified Public

Accountants defines Accounting as “ the art of :
 Recording
 Classifying and
 Summaririzing
 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”