Week one_ACC111 - PRINCIPLES OF ACCOUNTING I [Autosaved] [Autosaved].ppt

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Raising a new Generation of Leaders.ACC111 - PRINCIPLES OFACCOUNTING IWEEK ONEDEFINITION, SCOPE ANDPROCESS OF ACCOUNTING2020/2021 SESSION
2LEARNING OBJECTIVESAt the end of this lecture students should be able to :Define accounting;Explain the nature and scope of accounting;Identify the accounting process;Explain the various branches of accountingDefine the meaning of accounting information; andEnumerate the uses of accounting information.
3Brief History of AccountingThe history of accounting can betraced to different civilizations inworld history.The practice of Accounting datesbacktoancientcivilizationsinancientMesopotamia,ancientEgypt, and ancient Babylon.
4Brief History of Accounting(cont’d)Trade was one of the major featuresof ancient civilizations. Commoditiesincluding salt, wood, perfumes, andslaves were the inventory traded inthe ancient civilizations.
5Brief History of Accounting(cont’d)Trade gave rise to the use of moneyor currency.Theuseofmoneyorcurrencyfacilitatedthemeasurementofincome, expenditure, and profit.
6Brief History of Accounting(cont’d)The use of money or currency facilitatedthe development of the double-entryaccounting system.Thedouble-entryaccountingsystemwas developed and documented by anItalian mathematician, Luca Pacioli in hisbook titled “Summa de Arithmetica,Geometrica,ProportionietProportionalita”, published in 1494.
7Brief History of Accounting(cont’d)The double-entry accounting systemformsthebasisoffinancialaccounting and has been greatlyfacilitated by the measurement oftransactions in monetary terms.
8Definition of AccountingAccording to the Committee on Terminologyof the American Institute of Certified PublicAccountants:Accountingistheartofrecording,classifyingandsummarizinginasignificant manner and in terms of money,transactions and events which are, in partat interval\least, of a financial character,and interpreting the result thereof. (AICPA1961).
9Definition of Accounting(cont’d)The American Accounting Association definedAccounting as:The process of identifying, measuring andcommunicating economic information topermit informed judgments and decisions byusers of the information (American AccountingAssociation, 1966).
10The Process ofAccountingAccounting is not an end initself. It is a means to an end.The accounting processcomprises different activitiesand operations.

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Term
Summer
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Tags
Double entry bookkeeping system, American Accounting Association, American Accounting, Foundation of Accounting, Process of Accounting

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