This document provides an introduction to accountancy by defining accounting, outlining its characteristics and objectives, and describing its various sub-fields and users. Accounting is defined as the process of recording, classifying, summarizing, analyzing, and interpreting financial transactions and data. It has the objectives of maintaining accurate financial records, calculating profit and loss, ascertaining financial position, and meeting legal requirements. The main sub-fields are financial accounting, cost accounting, management accounting, tax accounting, and social responsibility accounting. The advantages of accounting include aiding management decision-making and providing systematic financial records, while the disadvantages include being based on historical data and subject to personal judgment.

1. INTRODUCTION
TO
ACCOUNTANCY

2. CONTENT -
■ Meaning of Accounting
■ Characteristics of accounting
■ Objectives of accounting
■ Sub-fields of Accounting
■ Advantages & Disadvantages of Accounting
■ Book-keeping, Accounting & Accountancy
■ Users of accounting

3. It is process of recording, classifying, summarising and interpreting the financial data.
“Accounting is a science as well as art which identify, record, classify, summarise, analysis & interpret or
communicate only the financial nature transaction or those transaction which are in terms of money.”
MEANING

4. CHARACTERISTICS
Art as well as
Science
Only financial
nature
transaction
Records In
terms of
money
Classify Summarise
Interpret the
results
Communicate

5. OBJECTIVES
OBJECTIVES
Maintain
records
Calculate
P&L
Ascertain
financial
position
Legal
requirements
As
evidence
Prevent &
detect errors
& frauds
Trend
of P& L

6. SUB-FIELD OF
ACCOUNTING
SUB-
FIELDS
Financial
Accounting
(Records
financial data)
Cost
Accounting
(ascertain
cost & reduce
it)
Management
Accounting
(Assist
mgmt.)
Tax
Accounting
(tax purpose)
Social
Responsibility
Accounting
(benefits to
society)

7. ADVANTAGES &
DISADVANTAGES
ADVANTAGES DISADVANTAGES
Help the mgmt. in decision-making Based on historical data
Provide systematic records Affected by window dressing
An evidence Not include qualitative information
Information of Profit & Loss Influence by personal judgement
Information of financial position Based on accountant knowledge
Solve legal matters Unsuitable for forecasting
Prevent & detect Frauds & errors
Based on information which may be
incorrect

8. BOOK-KEEPING, ACCOUNTING &
ACCOUNTANCY
BOOK-KEEPING
•Recording & classification of financial
transaction
•Primary stage
•Clerical work
•Limited knowledge
•Obj. – maintain systematic records
ACCOUNTING
Summarisation, interpretation &
communication of financial data
Secondary stage
High knowledge
Analytical in nature
Obj. – ascertain the results
ACCOUNTANCY
Rules & principles
Theories & practices
Book-keeping & Accounting depends on it

9. USERS
USERS
Shareholders
Board of Directors
Owner
CreditorsGovernment
Researchers
Employees

10. THANKYOU
YAMINI
KAHALIYA