These notes are provided from studifysuccess
CLASS 11
ACCOUNTANCY
CHAPTER 1: INTRODUCTION TO
ACCOUNTING
https://www.studifysuccess.com Made by Krishna Sunish
, These notes are provided from studifysuccess
Meaning of Accounting
The American Institute of Certified Public Accountants (AICPA) had
defined accounting as the art of recording, classifying, and
summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least, of financial
character, and interpreting the results thereof’.
Accounting is used by everyone and a good understanding of it is
beneficial to all. Accountancy act as a language of finance. To
understand accounting efficiently, it is important to understand the
aspects of accounting.
Economic Events- It is a consequence of a company has to undergo
when the number of monetary transactions is involved. Such as
purchasing new machinery, transportation, machine installation on-
site, etc.
Identification, Measurement, Recording, and Communication-
The accounting system should be outlined in such a way that the
right data is identified, measured, recorded and communicated to
the right individual and at the right time.
Organization-In refers to the size of activities and level of a
business operation.
Interested Users of Information- It is about communicating
important financial information to the customers, according to
which they will make the correct decision.
https://www.studifysuccess.com Made by Krishna Sunish
CLASS 11
ACCOUNTANCY
CHAPTER 1: INTRODUCTION TO
ACCOUNTING
https://www.studifysuccess.com Made by Krishna Sunish
, These notes are provided from studifysuccess
Meaning of Accounting
The American Institute of Certified Public Accountants (AICPA) had
defined accounting as the art of recording, classifying, and
summarizing in a significant manner and in terms of money,
transactions and events which are, in part at least, of financial
character, and interpreting the results thereof’.
Accounting is used by everyone and a good understanding of it is
beneficial to all. Accountancy act as a language of finance. To
understand accounting efficiently, it is important to understand the
aspects of accounting.
Economic Events- It is a consequence of a company has to undergo
when the number of monetary transactions is involved. Such as
purchasing new machinery, transportation, machine installation on-
site, etc.
Identification, Measurement, Recording, and Communication-
The accounting system should be outlined in such a way that the
right data is identified, measured, recorded and communicated to
the right individual and at the right time.
Organization-In refers to the size of activities and level of a
business operation.
Interested Users of Information- It is about communicating
important financial information to the customers, according to
which they will make the correct decision.
https://www.studifysuccess.com Made by Krishna Sunish
