Accounting is defined as the process of identifying, measuring, and communicating economic information to allow for informed judgments and decisions. It involves recording financial transactions, classifying them, and communicating the results. The key aspects are identifying and measuring economic events and communicating that information to interested users. Accounting provides important data for control of assets and liabilities, ascertainment of financial affairs, and identification and recording of transactions. It aims to be reliable, relevant, understandable, and comparable. Computerized accounting systems now process accounting information digitally for improved accuracy and accessibility.

1. COMPREHENSIVE STUDY OF ACCOUNTING

2. ACCORDING TO AICPA ACCOUNTING IS DEFINED
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”.
{NOTE: AICPA :-The American Institute Of Certified Public Accountants}

3.  INTRODUCTION:
Art of recording , classifying and summarizing of financial transactions.
The American Accounting Association (AAA) defines Accounting as,
‘the process of identifying, measuring and communicating economic
information to permit informed judgments and decisions by users of
information’.

4. Aspects of the definition:
• Economic Events
• Identification, Measurement, Recording and Communication
• Organization
• Interested Users of Information

5.  The accounting equation shows
on a company's balance that a
company's total assets are
equal to the sum of the
company's liabilities and
shareholders' equity.

6.  OBJECTIVES OF ACCOUNTING:
o CONTROL OVER ASSETS AND LIABILITIES:
*Control over business resides with businessman.
*Actual position pf debt, liabilities etc. can be
ascertained through proper book keeping.
o PROVIDING ECONOMIC DATA:
*Provides economic datas required for financial
reports.

7. oASCERTAINMENT OF FINANCIAL AFFAIRS:
*Preparing of income statement.
*Ascertain surplus and deficit
oIDENTIFICATION AND RECORDING OF TRANSACTIONS:
. *Primary objective.
*Shows true nature of transactions.

8.  T account is an important
part of accounting.

9. QUALITATIVE CHARACTERISTICS OF ACCOUNTING
INFORMATION:
oReliability:
*Users must be able to depend on the information.
*Reliable information should be free from errors and bias.
oRelevance:
*Makes a difference in decision making.

10. o Understandability:
*Information helps to compare between different entities.
o Comparability:
*It allows comparison of single entity from one accounting
period to the next.

11.  Golden rules of accounting.

12. BOOK KEEPING

13.  Process of recording financial transactions of a company on a regular
basis.
Process of managing all the financial data of a company.
Make companies aware of their current financial position, as well as the
transactions that occur within the company.

14.  IMPORTANCE OF BOOK KEEPING:
Gives companies a reliable measure of their performance.
Essential function for both legal and financial management purposes.
 Helps to respond to potential IRS inquiries or audits.
Provides recommendations to ensure accuracy and improve spending.

15.  The Golden rules define the treatment of all
transactions conducted by the business.

16.  BRANCHES OF ACCOUNTING
 There are 8 different branches of accounting:

17. BRANCHES OF
ACCOUNITNG
5)Accounting
Information
System
6)Tax
Accounting
7)Forensic
Accounting
8)Fiduciary
Accounting
1)Financial
Accounting
2)Cost
Accounting
3)Auditing
4)Managerial
Accounting

18. 1)FINANCIAL ACCOUNTING:
 Involves recording and categorizing of financial transactions in the
business.
 Recording of transactions according to the accounting principles.
 Original form of accounting process.
 To calculate profit and loss of the firm and to ascertain financial position.

19. 2)COST ACCOUNTING:
A type of managerial accounting.
Deals with the evaluation of the cost of product or services offered.
Internally used to assess company’s operations.
It deals with company’s fixed assets and variable costs.

20. 3)AUDITING:
Two types: (A)INTERNAL AUDITING : A third party who reviews a
financial statement with respect
to GAAP.
(B)EXTERNAL AUDITING : Helps to reduce frauds,
mismanagement etc.

21. 4)MANAGERIAL ACCOUNTING:
 Also known as MANAGEMENT ACCOUNTING.
 Provides information to the management for better administration.
 Helps to make important decisions.
 Includes budgeting, forecasting, cost analysis, financial analysis, reviewing
past business decisions ETC.

22. 5)ACCOUNTING INFORMATION SYSTEMS:
• Also known as AIS.
• Collection , storage, processing etc. of financial and accounting data used
by internal users.
• A computerized method for tracking accounting activity in relation with
information technology resources.
• Includes accounting software management , the management of
bookkeeping , accounting employees etc.

23. 6)TAX ACCOUNTING:
o Involves planning for tax time and the preparation of tax returns.
o Deals with the preparation of tax returns and tax payments.
o Mainly used by individuals, businesses, corporations and other entities.
o Focuses on taxes rather than the appearance of public financial
statements.

24. 7)FORENSIC ACCOUNTING:
• A blend of accounting and investigative techniques which are used to
identify financial crimes.
• Helps to narrate the nature of financial crimes committed, to the
courts.
• Mainly used by Insurance industries to set up damages from the
claims.

25. 8)FIDUCIARY ACCOUNTING:
o Deals and manages any account and activities related to the
administration and wardenship of property.
o Works on Cash basis.
o Deals with the management of property for another person or business.

26.  INFLATION ACCOUNTING:
Two methods are used:
(A)CURRENT PURCHASING POWER [CPP]:
Monetary and non-monetary
items are separated.
(B)CURRENT COST ACCOUNTING [CCA] :
Values assets at fair market
value rather than historical cost.
 Process and practice of
adjusting financial
statements according to
its price indexes.

27.  This is an image of an accounting
worksheet prepared on behalf of ENGLAND
TOURS COMPANY

28.  GENERALLY ACCEPTED ACCOUNTING
PRINCIPLES [GAAP]:
 (GAAP) refer to a common set of accounting principles, standards, and
procedures issued by the Financial Accounting Standard Board(FASB).

29. 1) PRINCIPLE OF REGULARITY: Accountants has to obey all the rules and
regulations of GAAP.
2) PRINCIPLE OF CONSISTENCY: Accountants should enter all the items as
in the same way , which has been fixed.
3) PRINCIPLE OF SINCERITY :Accountants should provide correct depiction
of financial statement.

30. 4) PRINCIPLE OF
PERMANENCE OF
METHOD : There
must be

31. 6) PRINCIPLE OF
PRUDENCE :
Financial data
representation

32. 9) PRINCIPLE OF FULL DISCLOSURE : While creating the financial reports,
the accountants must strive aim full
disclosure.
10) PRINCIPLE OF UTMOST GOOD FAITH : This states that the parties must
remain honest in the financial
transactions.

33.  Some basic terms regarding
accounting.

34.  ACCOUNTING PRINCIPLES
 Rules and guidelines that a company must follow.

35. ACCOUNTING PRINCIPLES ARE OF TWO TYPES
GENERAL PRINCIPLES SPECIFIC PRINCIPLES
 Basic assumptions ,
concepts and guidelines for
preparing financial
statements.
 Rules used in reporting
business transactions and
events.
 Stem from long used
accounting practice.
 Created by an
pronouncement from ana
authoritative body.

36. ACCOUNTING
PRINCIPLES
REVENUE
RECOGNI-
TION
GOING
CONCERN
CONSISTE-
NCY
ACCRUAL
COST
MATERIALI-
TY
MATCHING
CONSERVA
-TION

37.  Basic accounting
principles that every
graduates must know.

38.  The accounting cycle is a collective process of
identifying, analyzing, and recording the
accounting events of a company.

39.  Accounting ratio is the comparison of two
or more financial data which are used for
analyzing the financial statements of
companies.

40.  COMPUTERIZED ACCOUNTING
• Accounts that are stored on a company's computer,

41. Processing of accounting information with respect to GAAP.
Software program which is stored on a company’s computer, network
server etc.
Accessed via internet.
Minimize errors.

42.  These are some of the advantages of
COMPUTERIZED ACCOUNTING.

43.  Components of Accounting worksheet.

44.  Modern rules of accounting are given below:

45.  DIFFERENCE BETWEEN INTERNATIONAL
FINANCIAL STANDARDS (IFRS) AND INDIAN
ACCOUNTING STANDARDS (Ind-AS):
Ind-AS IFRS
*Balance Sheet *Statement of profit and loss.
*Profit and loss account. *Statement of cash flows.
*Statement of changes in equity. *Statement of changes in equity.
*Disclosure of significant
accounting policies.
*Statement of financial position.

46.  Classification of accounts are shown in the following chart:

47.  Types of ratio analysis
methods.

48. CONSISTENCY
PRUDENCE
DISCLOSURE
MATERIALITY
ACCOUNTING
CONVENTIONS

49.  This is a graphical depiction of
accounts payable turnover over
a year.

50.  This is a graphical representation of
accounts receivable turnover over a year.

51.  CLOUD ACCOUNTING
 is accounting software that is hosted on a remote server

52. BENEFITS OF
CLOUD
ACCOUNTING
RELIABILITY
PAPERLESS SECURITY
USER FRIENDLINESS
EASE OF ACCESS
AFFORDABILITY

53.  This is a newspaper cutting on the
accounting errors that happened
once.

54.  This graph depicts the picture of
environment management accounting
systems.

55.  This image shows the
various modern accounting
systems.

56.  DIFFERENCE BETWEEN TRADITIONAL AND
MODERN ACCOUNTING:
TRADITIONAL
ACCOUNTING
MODERN ACOUNTING
Calculations are performed manually
/ physically.
Calculations are performed by
computers.
Slow speed Faster
Original entry Database
Backup is not possible. Backup is possible.

57.  This image shows the view of
an accounting journal entry.

58.  This picture shows the
various types of graphs and
charts used in accounting
system.

59.  CONCLUSION:
• Accounting has the character of users’ acceptability for decision making.
• It influences the behavior of its users. SO it is a behavioral process.
• It is an integrated part of behavioral sciences.
• There is always the scope for research and development in accounting.