CHAPTER 1

INTRODUCTION TO
ACCOUNTING
Fundamental Accounting:
Concept & Practical Approach
Chapter 1
 TOPIC OUTLINE
PART 1 PART 2

q INTRODUCTION TO q THE BUILDING BLOCKS OF

ACCOUNTING ACCOUNTING

q DEFINITION OF ACCOUNTING q TYPES AND VARIOUS FORMS

OF BUSINESS ENTITY
q THREE BASIC ACTIVITIES

q FUNCTIONS & OBJECTIVE OF

FINANCIAL REPORTING

q USES AND USERS OF FINANCIAL

INFORMATION

q QUALITATIVE CHARACTERISTICS
OF ACCOUNTING INFORMATION
q INTRODUCTION TO ACCOUNTING

q DEFINITION OF ACCOUNTING

q THREE BASIC ACTIVITIES

q FUNCTIONS & OBJECTIVE OF FINANCIAL REPORTING

q USES AND USERS OF FINANCIAL INFORMATION

q QUALITATIVE CHARACTERISTICS OF ACCOUNTING

INFORMATION

PART 1
INTRODUCTION TO ACCOUNTING
Business
A business can be defined as an organization
(engaged in commercial, industrial, or
professional activities) that provides goods and
services to others who wanted or needed them,
either for profit or non-profit.

Accounting is a business language – it consists of numbers and

interpretation of these numbers which are communicated to provide
insights of the business’s economic transactions
 HISTORY AND DEVELOPMENT OF
ACCOUNTING
• STARTED 7000 YEARS TO THE EARLY CIVILIZATIONS OF EGYPT,
BABYLON, GREECE & ROME.
• THE GREATEST INTEREST IN BOOK-KEEPING-DURING RENNAISANCE
PERIOD
• IN 1494, THE FIRST PUBLISHED WORKS ON DOUBLE ENTRY BOOK-
KEEPING WAS PRODUCED BY LUCA PACIOLI.
• IN 17TH CENTURY, REFINE VERSIONS OF PACIOLI’S WORKS WERE
PRODUCED IN ENGLAND & HOLLAND TO FORMULATE RULES FOR
DOUBLE ENTRY BOOK-KEEPING & PREPARATION OF FINANCIAL
STATEMENTS.
• IN 19 T H CENTURY, DURING THE INDUSTRIAL REVOLUTION,
B U S I N E S S E S W E R E E X P E N D E D, T H E N L E D T O T H E C O S T
ACCOUNTING DEVELOPMENT AND THE NEED TO PROTECT
INVESTORS THAT GAVE RISE TO AUDITING.
• NOWADAYS, THE EXISTING LAWS WERE REFINED AND NEW LAWS
WERE INTRODUCED TO REGULATE THE CONDUCT OF BUSINESS
THESE NEW LAWS REQUIRED THE DETAILED FINANCIAL STATEMENTS
TO BE PERIODICALLY PRESENTED TO SHAREHOLDERS.
 DEFINITION OF ACCOUNTING
ACCOUNTING IS A PROCESS OF IDENTIFYING, RECORDING, & CLASSIFYING
BUSINESS TRANSACTIONS, SUMMARISING THESE TRANSACTIONS IN MONETARY
UNITS, THEN INTERPRETING & COMMUNICATING THEM TO THOSE WHO HAVE
INTERESTS IN THE BUSINESS & IN MAKING FINANCIAL DECISIONS”.
- SITI NOOR HAYATI, AMLA, ROKIMAH & ROSMAWATI, (FUNDAMENTAL ACCOUNTING, 2021)

THE PROCESS OF CLASSIFYING, RECORDING AND SUMMARIZING OF

T R A N S AC T I O N S A N D BU S I N E S S E V E N T S I N M O N E TA RY T E R M S, A N D
INTERPRETING THE RESULTS TO INTERESTED PARTIES (USERS OF FINANCIAL
STATEMENTS) TO ASSIST THEM IN DECISION MAKING.
 THREE BASIC ACTIVITIES
1: Identification of 2: Recording 3: Communication of
economic event accounting report

• = business • Business transactions • Communicate the

transactions/econo are recorded in a accounting reports
mic transactions of systematic & to interested users
the business entity chronological order • Includes analysis &
• Eg., sales & • Bookkeeping interpretation of the
purchase of function of reported
inventory, payments accounting information.
of expenses, • Includes Classifying • Analysis – use of
purchase of business & Summarising ratios, %, graphs &
assets • Classifying – charts to highlight
arrange to 5 the fin. Perf., trends
categories (A, L, OE, & relationships.
R, E) • Interpretation –
• Summarising – involves explaining
simplify multitude of the meaning &
transactions in total limitation of
in the form of reported data.
fin.sments (eg.,
SOPL & SOFP)
 FUNCTIONS & OBJECTIVES OF FINANCIAL
REPORTING
“is to provide information about
Functions Objectives reporting entity that is useful to existing
& potential investors, lenders and other
creditors in making decisions about
Record & control Primary objective: provide fin. Info.
(presented in Fin. Sments) to the primary providing resources to the entity.”
business
transactions users (owner, existing & potential (Malaysian Conceptual Framework for
investors, lenders & other creditors. Financial Reporting)
Maintain accuracy
in recording Provide info. about entity’s fin. Perf. & fin.
Position to other interested users
(internal/external).
Meet the
requirements of
law
Provide info. to evaluate stewardship of
Present final management
accounts to
business owners

Facilitate efficient
allocation of
resources
 Uses and Users of Financial
Information
Internal Users
= those who Managements – plan,
are within organize, control & analyse
the business the business performance.
organization Financial managers –
& who use investment decision in a
the project, evaluate the
information business’s ability to pay
to run the dividends & debts.
business on
a day-to- Marketing managers - to
day basis & determine on the policies &
for making prices of the products to be
business marketed.
decisions. Human Resource (HR)
managers – to assess
business’s capability to raise
employees’ pays.
 Uses and Users of Financial
Information
External Users
= those who are not Lenders (e.g., suppliers who
from within the supplies inventory on credit;
business bankers who give loan to the
organization; they business) – to evaluate debt/loan
are from outside of repayment ability.
the organization & Investors – to make investment
those who have no decisions (buy/hold/sell ownership
involvement in the or shares of the business).
day-to-day business
operations & Inland Revenue Board (LHDN) – to
decisions. determine appropriateness of tax
They are individuals paid by the business.
or organisations that
Malaysian Trade Union Congress –
require financial
to negotiate & improve workers’
information of the
economic situation, to know whether
business to make
is able to increase the pay & other
decisions for current
benefits or not, etc.
& future interests.
 QUALITATIVE CHARACTERISTICS OF
ACCOUNTING INFORMATION
(MASB’s Conceptual Framework for Financial Reporting)

Relevance Fundamental
Qualitative
Faithful Representation Characteristics

Useful
Financial
Information
Comparability
Verifiability Enhancing
Qualitative
Timeliness
Characteristics
Understandability
 QUALITATIVE CHARACTERISTICS OF
ACCOUNTING INFORMATION
Relevance • Accounting information is relevant if it can influence the users’
decision making.
• The relevance of accounting information depends on its
Fundamental predictive and confirmatory value, its nature and its materiality.
Qualitative
Characteristics Faithful The information presented reflects the phenomena that it is
Representation supposed to represent.
Therefore, the information should be free from errors or mistakes,
and it must be neutral and complete.
Comparability User must be able to compare the performance or the financial
position of the business with prior years’ or with other businesses.
Hence, accounting policies need to be disclose to permit
meaningful comparison.
Verifiability Different sources of information provide similar information.
Enhancing
Qualitative Timeliness Timely accounting information permits prompt & good decisions
Characteristics and actions to be undertaken.
If the accounting information is not reported timely, it may loose
its relevance & no longer be useful.
Understandability The financial statements should be understandable by users with
reasonable knowledge about the business, it economic activities, &
about accounting.
q THE BUILDING BLOCKS OF ACCOUNTING

q TYPES AND VARIOUS FORMS OF BUSINESS ENTITY

PART 2
 THE BUILDING BLOCKS OF ACCOUNTING

1 2
Ethics in Financial GAAPs & Accounting
Reporting Standards

4 BUILDING
BLOCKS OF
ACCOUNTING
§ Economic
entity concept
4
§ Monetary unit
3 Accounting Concepts, assumption
§ Going concern
Measurement Principles Conventions & concept
Assumptions § Accrual-based
accounting
§ Historical cost principle § Neutrality
§ Objectivity principle § Materiality
§ Full disclosure principle § Periodicity
§ Revenues and expenses recognition principle assumption
§ Consistency
concept
 1. ETHICS IN FINANCIAL
REPORTING
• ACCOUNTANTS ARE EXPOSED TO POTENTIAL
RISKS SUCH AS BIASNESS, MISINTERPRETATION,
MISREPRESENTATION & AMBIGUITY.
• AMONG FACTORS CONTRIBUTING TO
FRAUDULENT REPORTING IS THE ATTITUDE &
ETHICAL ISSUES OF INDIVIDUALS INVOLVED IN THE
PREPARATION OF FINANCAIL STATEMENTS.
• THUS, TO REDUCE FRAUDULENT FINANCIAL
REPORTING, AN INDIVIDUAL INVOLVED IN
FINANCIAL REPORTING MUST HAVE GOOD
ATTITUDE OF MIND & BE ETHICAL TO BE ABLE TO
JUDGE WHAT IS RIGHT & WHAT IS WRONG.
• IN ADDITION, THE ACCOUNTING PROFESSION
HAS DEVELOPED A SET OF ACCOUNTING
STANDARDS & GUIDELINES WHICH ARE
GENERALLY ACCEPTED & UNIVERSALLY PRACTICED
BY ACCOUNTANTS IN THE PREPARATION OF
FANCIAL STATEMENTS.
2. WHY ACCOUNTING
STANDARDS EXIST?
• TO HAVE A UNIFORM FINANCIAL
STATEMENTS AS IT SERVE VARIOUS TYPES
OF USERS.
• TO REDUCE THE POSSIBILITIES OF VERY
LARGE VARIATIONS IN FINANCIAL
REPORTING.
• FOR COMPARABILITY PURPOSES.
• TO SHOW ‘TRUE AND FAIR VIEW’ OF AN
ORGANISATION - COMPLIANCE WITH
ACCOUNTING STANDARDS (EG: MFRS) &
GUIDELINES IS JUDGED AS RIGHT/TRUE,
HONEST, & FAIR.
15
 ACCOUNTING CONVENTIONS, BASES &
POLICIES
• INTRODUCTION:
• ACCOUNTING PRINCIPLES OR CONCEPTS – RULES THAT MUST BE
FOLLOWED TO ENSURE SUBJECTIVITY. CONSISTS OF CONVENTIONS,
BASES & POLICY CONSIDERATIONS.
• CONVENTIONS – ASSUMPTIONS, REFER TO GENERAL UNDERSTANDING OR
GENERALLY ACCEPTED IDEAS.
• BASE OR BASIS – PRINCIPLE THAT HELPS IN RECORDING PROCESS,
MEASUREMENT APPROACH.
• POLICY – ADOPTION OF CERTAIN ACCOUNTING METHOD OR BASIS &
CONSISTENT APPLICATION.
• THE CONCEPT OF TRUE AND FAIR VIEW IS APPLIED IN ENSURING
WHETHER COMPANY’S ACCOUNTS SHOW ACCURATELY THE
BUSINESS' ACTIVITIES.
• ADOPT CERTAIN CONCEPTS AND CONVENTIONS WHICH HELP TO
ENSURE THAT ACCOUNTING INFORMATION IS PRESENTED
ACCURATELY AND CONSISTENTLY.
 ECONOMIC ENTITY CONCEPT
• A BUSINESS IS CONSIDERED SEPARATE ENTITY
• THE BUSINESS ENTITY IS THEREFORE CONSIDERED
TO BE DISTINCT FROM ITS OWNERS FOR THE
PURPOSE OF ACCOUNTING @ A UNIT BY ITSELF.
• ITEMS RECORDED IN BUSS BOOKS ARE
TRANSACTION AFFECTING THE BUSINESS ONLY.
• E.G: ONE OF THE OWNER TRANSFER HIS
PERSONAL ASSETS TO THE BUSINESS FOR
BUSINESS USE. AS A RESULT THAT ASSETS ARE
NOW CONSIDER TO BE THE PROPERTY OF THE
BUSINESS (BUSINESS VIEW POINT) & INVESTMENT
(OWNER’S VIEW POINT).
 MONEY MEASUREMENT/ MONETARY CONCEPT

• EVERY RECORDED EVENT OR TRANSACTION IS

MEASURED IN TERMS OF MONEY.
• IF CANNOT BE EXPRESSED IN TERMS OF MONEY IS NOT
RECORDED IN THE ACCOUNTING BOOKS.E.G. RINGGIT
MALAYSIA (RM)
• ASSUMPTION:
a. MONEY – COMMON DENOMINATOR
b. MONETARY UNITS – APPROPRIATE BASIS FOR ACCTG
MEASUREMENT & ANALYSIS.
c. MONETARY UNITS – MOST EFFECTIVE MEANS OF
EXPRESSING TO INTERESTED PARTIES CHANGES IN
CAPITAL & EXCHANGES OF GOODS & SERVICES
 GOING CONCERN CONCEPT

• BUSINESS IS ASSUMED TO HAVE AN INDEFINITE LIFE

(PRESUMED TO BE HEALTHY AND LIKELY TO CONTINUE IN
BUSINESS FOR THE FORESEEABLE FUTURE) UNLESS THERE IS
GOING TO BE LIQUIDATED IN THE NEAR FUTURE.
• IT IS MADE ON THE BASIS OF LONG-TERM CONSIDERATIONS
 ACCRUAL BASED ACCOUNTING
• FINANCIAL STATEMENTS ARE PREPARED UNDER THE ACCRUALS
CONCEPT OF ACCOUNTING WHICH REQUIRES THAT INCOME AND
EXPENSE MUST BE RECOGNIZED IN THE ACCOUNTING PERIODS TO
WHICH THEY RELATE RATHER THAN ON CASH BASIS.
• INCOME MUST BE RECORDED IN THE ACCOUNTING PERIOD IN
WHICH IT IS EARNED. THEREFORE, ACCRUED INCOME MUST BE
RECOGNIZED IN THE ACCOUNTING PERIOD.
• EXPENSES, ON THE OTHER HAND, MUST BE RECORDED IN THE
ACCOUNTING PERIOD IN WHICH THEY ARE INCURRED. THEREFORE,
ACCRUED EXPENSE MUST BE RECOGNIZED IN THE ACCOUNTING
PERIOD IN WHICH IT OCCURS RATHER THAN IN THE FOLLOWING
PERIOD IN WHICH IT WILL BE PAID.
 NEUTRALITY CONCEPT

• FINANCIAL INFORMATION SHOULD BE NEUTRAL AND

BIAS FREE
• INFORMATION MUST BE FREE FROM BIAS TO BE
RELIABLE.
• NEUTRALITY WILL LOST IF THE FINANCIAL
STATEMENTS ARE PREPARED TO INFLUENCE USERS
TO MAKE JUDGEMENTS OR DECISION IN ORDER TO
ACHIEVE PREDETERMINED OUTCOME.
 MATERIALITY CONCEPT

• IN ACCOUNTING, AN AMOUNT IS CONSIDERED MATERIAL IF IT HAS

SIGNIFICANT EFFECT UPON STATEMENT OF PROFIT OR LOSS (SOPL) OR
STATEMENT OF FINANCIAL POSITION (SOFP).
• MATERIAL IS EXERCISING INFORMED JUDGMENT & DID NOT APPLY
SPECIFIC RULES
• E.G:
1) COST OF NEW BUILDING IS A MATERIAL AMOUNT & MUST BE
DEPRECIATED
2) COST OF AN ERASER OR PAPER CLIPS IS NOT MATERIAL
 PERIODICITY

• ECONOMIC ACTIVITIES OF A BUSS CAN BE DIVIDED INTO:

• MONTHLY, QUARTERLY OR YEARLY
• REPORTING PURPOSES – YEARLY BASIS
• MANAGEMENT PURPOSES – QUARTERLY OR MONTHLY
 CONSISTENCY
• TRANSACTIONS AND VALUATION METHODS ARE
TREATED THE SAME WAY FROM YEAR TO YEAR.
• THEREFORE, MORE MEANINGFUL COMPARISONS
OF FINANCIAL PERFORMANCE FROM YEAR TO
YEAR CAN BE MADE
• WHERE ACCOUNTING POLICIES ARE CHANGED,
COMPANIES ARE REQUIRED TO DISCLOSE THIS
FACT AND EXPLAIN THE IMPACT OF ANY CHANGE
• THIS CONCEPT HELPS TO ACHIEVE
COMPARABILITY.
TYPES & VARIOUS FORMS OF BUSINESS
ENTITY

Sole proprietorship

Partnersh
Company
ip

Limited liability
partnership
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
1) ENTITY NAME APPEARANCE
COMPANY
ENTITY LIMITED LIABILITY
NAME APPEARANCE GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Company name ended Company name ended Choice of trade name Choice of trade name
with “Sdn Bhd” or “Bhd” with the word “PLT” subjected to Registrar subjected to Registrar
of Business (ROB) of Business (ROB)
(Perkongsian Liabiliti approval approval
Terhad)

2) CAPITAL CONTRIBUTION
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Share capital Partners contribution Partners contribution Own contribution
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
3) OWNER(S) OF THE BUSINESS
COMPANY
ENTITY LIMITED LIABILITY
NAME APPEARANCE GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Shareholders Partners (partners have Partners Sole Proprietor
shares in the capital
and profits of LLP)

4) LEGAL ENTITY STATUS

4) COMPANY
LEGAL STATUS LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Separate legal entity Separate legal entity Not a separate legal Not a separate legal
entity entity
CHARACTERISTICS OF SOLE PROPRIETORSHIP, PARTNERSHIP AND
COMPANY
5) PARTY THAT IS LIABLE FOR DEBTS OF THE BUSINESS
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Company LLP Partners Sole Proprietor

6) RESPONSIBILITY FOR MANAGEMENT OF BUSINESS

COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Board of Directors Partners Partners Sole Proprietor
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
7) PERSONAL LIABILITY
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP

No 6)
personal
RESPONSIBILITY No
FORpersonal
MANAGEMENT OF Unlimited liability
BUSINESS Unlimited liability
liability of liability of partners, (jointly and severely which can extend to
individual director except for own liable with the personal assets of
or shareholders. wrongful act or partnership) which the sole proprietor
omission or without can extend to
Liabilities borne by authority personal assets of
the directors or the partners
shareholders are to Liabilities borne by
the extent of the partners are
unpaid shares only jointly and severally
with LLP to the
extent of unpaid
shares
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
8) NO OF SHAREHOLDERS/ PARTNERS
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Unlimited Minimum 2 and no 2 to 50 partners Sole Proprietor only
maximum (except for partnership
for professional
practice)

9) COMPANY SECRETARY/ COMPLIANCE OFFICER

COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Qualified Company Qualified Company N/A N/A
Secretary Secretary or partner
of the LLP
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
10) ANNUAL COMPLIANCE
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP

M u6)s tRESPONSIBILITY
f i l e a n n u a l FOR
M u sMANAGEMENT
t l o d g e a n OF BUSINESS
return and financial annual declaration
statements every a n d s o l v e n c y
calendar year statement with
Commission of
Company Malaysia
(SSM)
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
11) ANNUAL SUBMISSION TO CCM/ SSM
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Annual return with Annual declaration
audited/ unaudited
financial statement

12) ANNUAL FEE TO CCM/SSM

COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
RM200 RM200 Trade name – RM60 Trade name – RM60
Personal name – RM30 Personal name – RM30
 CHARACTERISTICS OF SOLE PROPRIETORSHIP,
PARTNERSHIP AND COMPANY
13) INCOME TAX STATUS/ RATE
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Tax on company Tax on LLP Tax on partners Tax on partners/ sole
proprietor

14) RULES & REGULATIONS

COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
Company Act 2016 Limited Liability Registration of Business Registration of Business
Partnership Act 2012 Act 1956 (RBA) Act 1956 (RBA)
(LLP)

Limited Liability
Partnership Regulations
2012
 ADVANTAGES AND DISADVANTAGES
COMPANY LIMITED LIABILITY GENERAL SOLE
PARTNERSHIP PARTNERSHIP PROPRIETORSHIP
• More paperwork • Less paperwork, • Less paperwork, • Less paperwork,
• Expensive registration is easy, registration is easy, registration is easy,
• Complexity in fast and fewer fast and fewer fast and fewer
administration documents are documents are documents are
(statutory audit, needed needed needed
AGM, board • Limited liability • Unlimited liability • Unlimited liability
resolution) • Simplest • Simplest • Simplest
• Higher compliance administration (not administration (not administration (not
cost compulsory for compulsory for compulsory for
• Suitable for business statutory audit) statutory audit) statutory audit)
affordable to • Not required to • Not required to • Not required to
maintain business disclose financial disclose financial disclose financial
with higher operation statements to public statements to public statements to public
cost • Lack of continuity
• Public has access to • Difficult to raise
financial affairs to capital
the company
SOME FINAL REMARKS...
 ACCOUNTING VS BOOKKEEPING
ACCOUNTING
• IS THE BIGGER PICTURE.
• RELATE WITH THE SYSTEM
THAT KEEPS TRACK OF THE DATA,
INCLUDING PEOPLE, AND RECORDS THE
TRANSACTION BY TAKING THE
INFORMATION FROM BOOKKEEPING
• INVOLVE ANALYSE THE RESULTS
• GIVE A REPORTS AND INFORMATION
NEEDED FOR MANAGEMENT TO MAKE
DECISIONS
BOOKKEEPING
• REFERS TO THE MECHANICAL ASPECT OF
ACCOUNTING, SUCH AS RECORDING,
CLASSIFYING AND SUMMARIZING
TRANSACTION
• IS A PART OF ACCOUNTING
• IS THE TEDIOUS PART OF THE FINANCIAL
AFFAIRS OF A BUSINESS.
• IT INVOLVES THE SYSTEMATIC AND
ACCURATE RECORDING OF THE:
1. AMOUNTS
2. DATES
3. SOURCES OF EACH REVENUE AND
EXPENSE TRANSACTION.
• BOOKKEEPING IS CONCERNED WITH
THE SYSTEMS THAT ENABLE THE
FINANCIAL INFORMATION TO BE
EXTRACTED IN THE TRANSACTIONS.
 ROLE OF ACCOUNTING PROFESSION IN
BUSINESS
• KNOWLEDGE OF ACCOUNTING IS VERY IMPORTANT FOR ALL FIELDS.
WHATEVER FIELD A BUSINESSMAN IS IN, HE WILL HAVE TO MAKE
DECISIONS & A WISE DECISION WILL BE TO RELY ON ACCOUNTING DATA.
• EVEN FOR PROFESSION THAT IS NOT RELATED TO ACCOUNTING LIKE
DOCTORS, LAWYERS ETC KNOWLEDGE OF ACCOUNTING IS VERY
IMPORTANT IN MAKING BUSINESS DECISIONS SUCH AS DECISION TO
OPEN A NEW BRANCH, TO INCREASE PRODUCT PRICE OR SHUT DOWN
AN OPERATION.
• ACCOUNTING IS HELPFUL IN THE EVALUATION OF PERFORMANCE &
INDICATES THE FINANCING IMPLICATIONS OF CHOOSING ONE PLAN OR
PROJECT VERSUS OTHER.
 EMPLOYMENT OPPORTUNITIES

Public Accountant
Private Accountant

-Offer services to general public for a fee. -employed by an organisation.

-Auditing, tax service, accounting
-financial accountants,
service & etc
Management accountant, cost
-services offered by those
Accountants & internal auditors
Who have license to practise
Accountant

Government Accountant
Educators

-employed by a federal agency or -lecturers, consultants, engage in

Local authority Research & publication, teachers.
Accounting Career Opportunities

Public Accounting Private Accounting

Careers in auditing, taxation, Careers in industry working in
and management consulting cost accounting, budgeting,
serving the general public. accounting information
systems, and taxation.

Government Forensic Accounting

Careers with the IRS, the FBI, Uses accounting, auditing, and
the SEC, and in public investigative skills to conduct
colleges and universities. investigations into theft and
fraud.
41