LEARNING OBJECTIVESAt the end of this chapter, you should be able to:Explain difference terms and basic concepts offinancial accountingIdentify the users of accounting informationDistinguish the different types of businessorganizationDifferentiate between bookkeeping andaccounting2
INTRODUCTION3Business???A business can be defined as anorganization that providesgoods and services to otherswho want or need them.
DEFINITION OFACCOUNTINGThe process ofclassifying, recording and summarizingof transactions and business events in monetaryterms, andinterpretingthe results to interestedparties (users of financial statements) to assist themin decision making.4
PROCESS OF ACCOUNTING5
THE PURPOSES OF ACCOUNTING6
THE USERS AND THE USE OF ACCOUNTINGINFORMATIONINTERNAL USERS7
THE USERS AND THE USE OF ACCOUNTINGINFORMATIONEXTERNAL USERS8