Accounting is a system used to record and report financial transactions and maintain financial records. It involves identifying, measuring, recording, and communicating financial information about an entity to various users. The accounting cycle includes identifying transactions, journalizing them, posting to ledger accounts, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries. Some key objectives of accounting are to ascertain profit or loss, value assets and liabilities, and provide information to stakeholders. Users like managers, investors, tax authorities, and regulators rely on accounting information for decision making, compliance, and more.
Accounting is a system used to record and report financial transactions and maintain financial records. It involves identifying, measuring, recording, and communicating financial information about an entity to various users. The accounting cycle includes identifying transactions, journalizing them, posting to ledger accounts, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries. Some key objectives of accounting are to ascertain profit or loss, value assets and liabilities, and provide information to stakeholders. Users like managers, investors, tax authorities, and regulators rely on accounting information for decision making, compliance, and more.
Accounting is a system used to record and report financial transactions and maintain financial records. It involves identifying, measuring, recording, and communicating financial information about an entity to various users. The accounting cycle includes identifying transactions, journalizing them, posting to ledger accounts, preparing a trial balance, adjusting entries, preparing financial statements, and closing entries. Some key objectives of accounting are to ascertain profit or loss, value assets and liabilities, and provide information to stakeholders. Users like managers, investors, tax authorities, and regulators rely on accounting information for decision making, compliance, and more.
Worksheet Answer the following questions Q1. Define accounting Q2. What are the features of accounting? Q3. What is accounting cycle? Q4. “Only financial transactions are recorded in accountancy”. Explain Q5. Explain any four objectives of accounting. Q6. Explain any four advantages of accounting Q7. “Accounting information should be comparable “. Do you agree with this statement? Give reasons Q8. State any six users of accounting information. Why do they need accounting information? Q9. Explain any four limitations of accounting Q10. Explain any two qualitative characteristics of accounting.