Summary Introduction to Accounting

INTRODUCTION TO ACCOUNTING


• MEANING OF ACCOUNTING
Accounting is a systematic process of recording, classifying,
summarising , analysing and interpreting the financial transactions and
communicating the results to the users thereof.



• CHARACTERISTICS OF
ACCOUNTING
1. Identification of financial transactions and events
2. Measuring the identified transactions
3. Recording
4. Classifying
5. Summarising
6. Analysis and interpretation
7. Communicating

• OBJECTIVES OF ACCOUNTING
1. Maintaining According records
2. Determining profit and loss
3. Determining financial position
4. Facilitating management
5. Providing Accounting information to users
6. Protecting business assets

• FUNCTIONS OF ACCOUNTING
1. Maintaining systemic according records
2. Prepration of financial statements or final accounts
3. Meeting legal requirements
4. Communicating the financial information
5. Assistance to management

• ADVANTAGES OF ACCOUNTING
1. Financial information about business