FINANCIAL ACCOUNTING vs.
1 OBJECT. - The object of financial accounting is to
record various transactions with the purpose
maintaining accounts and to know the financial
position and to find out profit loss at the end of the
Chapter 1 Accounting in Business
Accounting is at the heart of business
o Gives decision makers the details needed to give them an edge over
What Is Accounting?
Accounting is an information system that identifies, measures, records, and
Chapter 2 Analyzing and Recording Transactions
The accounting process identifies business transactions and events, analyzes
and records their effects, and summarizes and present information in reports
and financial statements.
These reports are used for m
Appendix 1 Payroll Liabilities
o Records cash payments to employees
o Provides valuable information regarding labour costs
o Accounts for amounts withheld from employees pay
o Accounts for employee (fringe) benefits and payroll costs p
P. ACCOUNTING CYCLE
The entire process of accounting for transactions and
preparing financial statements is known as the accounting
This process is repeated each accounting period.
Some companies prepare monthly f
INTRODUCTION TO ACCOUNTING
Meaning of Accounting
Accounting means Recounting-It involves
recording, classifying and summarizing of
the past events and transactions of
financial nature .
As an information system is the process
of identifying, measuring and
It signifies the receiving of benefit. In simple words it is the left hand
side. DEBIT is a record of an indebtedness; specifically an entry on the
left-hand side of an account constituting an addition to an expense or
BASIC CONCEPTS & QUES.
WHAT IS ACCOUNTING?
NEED FOR ACCOUNTING?
DOUBLE ENTRY BOOK KEEPING SYSTEM
Accounting is the art of recording ,classifying
and summarizing in a systematic manner and
in terms of
Buffets Acquisition Criteria
Large purchases (at least $50 million of before-tax earnings),
Demonstrated consistent earning power (future projections
are of no interest to us, nor are turnaround situations),
What is Finance?
1) Money & Capital markets.
which deals with securities markets & financial
Finance is the science of managing financial resources in
an optimal pattern i.e. the best use of available financial
An asset is a resource owned/controlled by the
enterprise from which future economic
benefits are expected to flow to the enterprise.
The resource must have a cost or value that
can be measured reliably
It need not have a physical substance.
Accounting in Action
Accounting in Action