Lecture 1

Introduction to accounting
Definition of accounting
the system of
recording and
summarizing business
and financial
transactions and
analyzing, verifying,
and reporting the
result
 Types of accounting
As a result of economic, industrial, and
technological developments, different
specialized fields in accounting have
emerged.
 Types of accounting
As a result of economic,
industrial, and
technological
developments, different
specialized fields in
accounting have emerged.
Financial Accounting
‫المحاسبة المالية‬
Financial accounting involves recording
and classifying business transactions, and
preparing and presenting financial
statements to be used by internal and
external users.
In the preparation of financial statements,
strict compliance with generally accepted
accounting principles or GAAP is
observed. Financial accounting is primarily
concerned in processing historical data.
Managerial Accounting
‫المحاسبة اإلدارية‬

Managerial or management accounting

focuses on providing information for use by
internal users, the management. This branch
deals with the needs of the management
rather than strict compliance with generally
accepted accounting principles.

Managerial accounting involves financial

analysis, budgeting and forecasting, cost
analysis, evaluation of business decisions,
and similar areas.
Cost Accounting
‫محاسبة التكاليف‬

Sometimes considered as a subset of

management accounting, cost accounting
refers to the recording, presentation, and
analysis of manufacturing costs. Cost
accounting is very useful in manufacturing
businesses since they have the most
complicated costing process.

Cost accountants also analyze actual and

standard costs to help managers determine
future courses of action regarding the
company's operations.
International accounting
‫المحاسبة الدولية‬

Intentional accounting deals with the

issues and complications involved in doing
trade in world markets. Many companies
have expanded their business
internationally. Such companies employ
accountants who possess detailed
knowledge about custom and taxation
laws of various countries
Government accounting
‫المحاسبة الحكومية‬

Government accounting is concerned

with the allocation and utilization of
government budgets. It ensures that the
central or state government funds
released for various purposes are being
utilized efficiently. The proper record
keeping makes the audit of completed
projects possible.
Auditing
‫المراجعة‬

The term auditing generally refers to review,

examination, verification, evaluation or
inspection of historical data, records or
events belonging to an entity. The person
who performs the work of audit is known as
auditor. In accounting and business, there
are two types of auditing – external auditing
and internal auditing.
Tax Accounting
‫المحاسبة الضريبية‬

Tax accounting helps clients follow rules set

by tax authorities. It includes tax planning
and preparation of tax returns. It also
involves determination of income tax and
other taxes, tax advisory services such as
ways to minimize taxes legally, evaluation
of the consequences of tax decisions, and
other tax-related matters.
Accounting Information Systems
‫نظم المعلومات المحاسبية‬

Accounting information systems (AIS) involves

the development, installation,
implementation, and monitoring of
accounting procedures and systems used in
the accounting process. It includes the
employment of business forms, accounting
personnel direction, and software
management.
Forensic Accounting
‫المحاسبة القضائية‬

Forensic accounting deals with legal

issues faced by business enterprises.
Accountants in this area uses their
knowledge, skills and techniques to
deal with legal matters such as dispute
resolution, claim settlement, fraud
investigation, court and litigation
cases etc.