Introduction to Accounting (1).pptx - Introduction to...

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Introduction toAccountingAuthor: Davinder Kaur Sohi
Introduction to AccountingAccounting may be defined as the processof recording, classifying, summarizing, analyzing and interpretingthe financial transactions and communicating the results thereof to the person interested in such information.Components of Accounting:RecordingClassifyingSummarizingDealing with Financial TransactionsAnalyzing and InterpretingCommunicating09/22/2020Author: Davinder Kaur Sohi2Accounting Defined
Introduction to AccountingTo keep systematic record-Accounting is done to keep systematic record of financial transactions. In the absence ofaccounting there have been terrific burden on human memory which is most cases would have been impossible to bear.To protect business properties-Accounting provides protection to business properties from unjustified andunwarranted use.To ascertain the operational profit or loss-Accounting helps in ascertaining the net profit earned or loss suffered onaccount of carrying the business. This is done by keeping a proper record of revenues and expenses of a particular period.To ascertain the financial position of business-Balance sheet is a statement of assets and liabilities of the business on a

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Term
Summer
Professor
DR GOVIND JHA
Tags
Balance Sheet, Income Statement, Davinder Kaur Sohi

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