2. What do you mean by accounting?
• Accounting is the process of keeping track of all financial transactions
within a business, such as any money coming in and money going out.
It's not only important for businesses in terms of record keeping and
general business management, but also for legal reasons and tax
purposes.
3. 1. Financial accounting
• Financial Accounting is the process of
documenting, analyzing and reporting every
transaction of a business or an organization, in
order to assess the financial health and stability of
the same.
4. 2.Management accounting
• Managerial accounting, also called
management accounting, is a method of
accounting that creates statements,
reports, and documents that help
management in making better decisions
related to their business' performance.
Managerial accounting is primarily used
for internal purposes.
5. 3.Cost accounting
• Cost accounting is a process of assigning
costs to cost objects that typically include
a company's products, services, and any
other activities that involve the company.
Cost accounting is helpful because it can
identify where a company is spending its
money, how much it earns, and where
money is being lost.
6. 4.asset
• In financial accounting, an asset is any
resource owned or controlled by a
business or an economic entity. It is
anything that can be used to produce
positive economic value. Assets represent
value of ownership that can be converted
into cash
7. 5.expenses
• An expense is an item requiring an outflow
of money, or any form of fortune in
general, to another person or group as
payment for an item, service, or other
category of costs. For a tenant, rent is an
expense. For students or parents, tuition is
an expense.
