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Austin Journal of Accounting, Audit and Finance Management

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Austin Journal of Accounting, Audit and Finance Management is a peer reviewed open access journal in publishes manuscripts from all the areas of accounting, accountancy, finance, auditing.

Austin Journal of Accounting, Audit and Finance Management Original Articles, Review, Discussion, Editorials, Letter, type of manuscripts from all the areas of the accounting, accountancy, finance, auditing.

Published in: Business
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Austin Journal of Accounting, Audit and Finance Management

  1. 1. ACCOUNTING? Accounting is a language of business. The affairs and the results of the business are communicated to others through accounting information, which has to be systematically recorded and presented
  2. 2. Help you prepare a budget and keep on target. Realize how much cash you have and if there is enough to pay bills. Uncover places where costs can be cut. HOW ACCOUNTING HELPS YOU?
  3. 3. TYPES OF ACCOUNTING Financial accounting Managerial accounting
  4. 4. Branch of accounting associated with preparing reports for external users i.e. the bank, shareholders FINANCIALACCOUNTING
  5. 5. Accounting to guide management in making decisions about the business i.e. break even analysis MANAGERIAL ACCOUNTING
  6. 6. CLASSIFICATION OF ACCOUNTS ACCOUNTS PERSONAL ACCOUNTS IMPERSONAL ACCOUNTS REAL ACCOUNTS NOMINAL ACCOUNTS
  7. 7. Accounts in the name of persons are known as personal accounts. Eg: Babu A/C, Babu & Co. A/C, Outstanding Salaries A/C, etc. PERSONALACCOUNTS
  8. 8. These are accounts of assets or properties. Assets may be tangible or intangible. Real accounts are impersonal which are tangible or intangible in nature. Eg:- Cash a/c, Building a/c, etc are Real Accounts related to things which we can feel, see and touch. Goodwill a/c, Patent a/c, etc Real Accounts which are of intangible in nature. REALACCOUNTS
  9. 9. These accounts are impersonal, but invisible and intangible. Nominal accounts are related to those things which we can feel, but can not see and touch. All “expenses and losses” and all “incomes and gains” fall in this category. Eg:- Salaries A/C, Rent A/C, Wages A/C, Interest Received A/C, Commission Received A/C, Discount A/C, etc. NOMINALACCOUNTS
  10. 10. The Balance Sheet The Income Statement Statement of Cash Flows FINANCIAL STATEMENTS
  11. 11. The balance sheet is an accountant’s snapshot of the firm’s accounting value on a particular date, as though the firm stood momentary still. The balance sheet states what the firm owns and how it is financed. Assets Liabilities + Stockholders’ equity THE BALANCE SHEET
  12. 12. The income statement measures performance over a specific period of time, say, a year. The accounting definition of income is: Revenue – Expenses is Income THE INCOME STATEMENT
  13. 13. 14 STATEMENT OF CASH FLOWS Sources of Funds Assets Liabilities and Stockholders’ Equity Uses of Funds Assets Liabilities and Stockholders’ Equity

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