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  • Introduction To Accounting

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    Jaya Sidhwani
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    This document discusses accounting and provides definitions from accounting organizations. It explains that accounting is the language of business and is an information system that records, processes, and communicates data about business transactions. Accounting helps determine profit or loss, financial position, and provides information to various stakeholders like investors, managers, and the government. It distinguishes accounting from bookkeeping and explains the differences between financial accounting, management accounting, and cost accounting.

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    Introduction to Accounting (1)

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    This document discusses accounting and provides definitions from accounting organizations. It explains that accounting is the language of business and is an information system that records, processes, and communicates data about business transactions. Accounting helps determine profit or loss, financial position, and provides information to various stakeholders like investors, managers, and the government. It distinguishes accounting from bookkeeping and explains the differences between financial accounting, management accounting, and cost accounting.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    24 views10 pages

    Introduction To Accounting

    Uploaded by

    Jaya Sidhwani
    This document discusses accounting and provides definitions from accounting organizations. It explains that accounting is the language of business and is an information system that records, processes, and communicates data about business transactions. Accounting helps determine profit or loss, financial position, and provides information to various stakeholders like investors, managers, and the government. It distinguishes accounting from bookkeeping and explains the differences between financial accounting, management accounting, and cost accounting.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 10

    Prof.

    Pallavi Vartak MMS Batch 2011-2013 Sem - I

    The

    business man must know 1. What he owns 2. What he owes 3. Whether he has earned a profit or suffered a loss on account of running a business 4. What is his financial position i.e. whether he will be in a position to meet all his commitment in the near future or he is in the process of becoming a bankrupt.

    Lenders Interest & loan Repayment Debt Financial Resources used in Org.

    Investors Equity Cap

    Dividends

    Investment in land , Build

    Buying R.M and Other supplies

    Paying salaries and wages to Managers, Employees

    Pay other Operating Expenses

    Produce Goods / services

    Sale of goods/ services


    Repay Loans & Interest on them Financial Resources Generated Pay Taxes to Government Pay Dividend Retained Earnings

    Accounting is a language of business.


    Accounting is an efficient system that express the numerous activities of organizations in a concise manner. Accounting is an Information system (system contains Input, processing of input and output) Accounting is an Art as well a science

    Accounting Accountin g

    Decision Makers Information needs Information

    Business Activities and transactions

    Recording of Data

    Processing Of Data

    Communication

    THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANT DEFINED ACCOUNTING AS FOLLOWS, ACCOUNTING IS AN ART OF RECORDING, CLASSIFYING AND SUMMARIZING IN TERMS OF MONEY , TRANSACTIONS AND EVENTS WHICH ARE IN PART AT LEAST, OF A FINANCIAL CHARACTER AND INTERPRETING THE RESULTS THEREOF.

    THE AMERICAN ACCOUNTING ASSOCIATION (AAA) DEFINES ACCOUNTING IS THE PROCESS OF IDENTIFYING, MEASURING AND COMMUNICATING ECONOMIC INFORMATION TO PERMIT INFORMED JUDGEMENTS AND DECISIONS BY USERS OF THE INFORMATION

    BOOK KEEPING It is on primary stage The basic objective of B.K. is to maintain systematic record of transaction Scope Identifying, measuring, recording, and classifying It is done by junior staff The book keeper can not supervise the work of an accountant.

    ACCOUNTANCY It is on secondary stage The basic objective of accounting is to ascertain net profits and financial position Summarizing, analyzing, interpreting, communicating It is done by senior staff. The accountant supervises the work of book keepers.

    Investors /owners Lenders Like Banks and financial Institutions Security Analysts Managers Employees and Trade Unions Customers Suppliers and Trade Financiers Government and Regulatory Authorities Academicians, Researchers and consultant

    Maintenance

    of business Records Preparation of Financial statement Comparison of results Decision Making Good evidence in court Planning & Control operations Provides information to interested groups Taxation matters Valuation of business

    Financial Accounting Management Accounting Cost Accounting

    Difference bet FA , CA and MA.doc

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