Accounting by anis & azyan

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this is an introduction to accounting by Hanis Amirah bt Haron

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Accounting by anis & azyan

  1. 1. ACCOUNTING<br />By<br />HanisAmirahbtHaron (2009604032)<br />AzyanAzilahbtHalimi (2009466372)<br />E-BUSINESS (ITS450)<br />
  2. 2. Table of content<br />
  3. 3. What is accounting?<br />Accounting is 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 with the result thereof.<br /> - defined by AICPA<br />Accountancy also means branch of mathematical sciences that is useful in discovering the causes of success and failure in business. <br />
  4. 4. 4 basic types of accountancy<br />
  5. 5. Division in principles of accountancy<br /><ul><li>Keeps track of all the funds ; </li></ul>money paid, money paid out, assets<br /><ul><li>goals : keep the ledgers of the company balance.
  6. 6. Setting up a system of recording
  7. 7. summarizing financial transaction
  8. 8. protects employees, investors, owner from accounting fraud.
  9. 9. performs by outside agencies.
  10. 10. accountant will examine the ledgers.</li></li></ul><li>Basic ways to record your financial transaction<br />*Balance Sheet : financial statement that reports the amount of company’s<br /> assets, liabilities and owners equity at a specific point in time<br />
  11. 11. Basic accounting concepts<br />1. The Basic Accounting Equation<br />2. Debit = Credit<br />Very important double entry bookkeeping rule!<br /><ul><li> In a transaction : all debits must equal all credits</li></li></ul><li>Basic account types<br />
  12. 12. How accounting helps in business sectors<br />Record keeping<br />recording business transactions<br />measuring results of financial changes<br />projecting financial effects of future transactions<br />preparing internal reports in a user-friendly format<br />Planning and control<br />collecting cash<br />controlling stocks<br />controlling expenses<br />co-ordination and monitoring of strategy/performance<br />monitoring gross margins<br />Decision making<br />using cost information for pricing, capital investment and marketing<br />evaluating market and product profitability<br />evaluating the financial effect of strategies and plans<br />
  13. 13. Importance of accounting system<br />Accurate reporting of business transactions.  <br />Easy access to financial statements. <br />Up to date reports on accounts payable, accounts receivables. <br />Excellent management tool.<br />Minimize problems with IRS & other tax authorities.<br />Compare your accounts with original budgets or forecasts.<br />Manage your resources better.<br />Identify trends in your business.<br />Highlight variations in your income or spending which may require attention.<br />

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