2. • Financial Management means the efficient
and effective management of money (funds)
in such a manner as to accomplish the
objectives of the organization.
Introduction
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3. • Generally Accepted Accounting Principles define the
accounting procedures, and understanding them is
essential to producing accurate and meaningful
records.
Generally Accepted Accounting
Principles (GAAP)
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4. • It makes comparison easy.
• Need for standardization
• For easy research and understanding
Why Generally Accepted
Accounting Principles?
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5. • Under the business
entity concept, the
activities of a business
are recorded separately
from the activities of
the stakeholders
GAAP1: The Business
Entity Principle:
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6. • The Cost Principle states that anything a business
purchases is recorded as the amount paid,
regardless of its real or perceived value.
GAAP2: The Cost Principle:
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7. • The Objectivity Principle
states that accounting
operates on objective
evidence.
• All transactions must have
proof that they were
carried out
GAAP3: The Objectivity
Principle:
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8. • economic data be recorded in monetary terms that
are rupees or any other currency as applicable.
GAAP4: The Unit of
Measure Principle:
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9. • The 'going concern' concept directs accountants
to prepare financial statements on the
assumption that the business is not about to go
broke or be liquidated.
GAAP5: The Going-Concern
Principle:
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11. • The first – single entry – is simplistic,
recording each transaction only once, either
as revenue or as an expense.
Accounting Systems:
Single Entry
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12. • your accounting data is
recorded at two places for a
meaningful way for use by
the stakeholders.
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Double Entry Accounting
System
13. • cash accounting method, revenue is recognized
and recorded when the cash is received and
expenses are recognized and recorded when the
cash payments are made.
Accounting Methods: Cash
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14. • Under the accrual method of accounting,
revenue and expenses are recognized and
recorded, when the product or service is
actually sold to customers or received from
suppliers, generally before they're paid for.
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Accrual Basis
15. • accounting process,
is a series of
procedures in the
collection,
processing, and
communication of
financial information.
Accounting Cycle
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19. Q1) what do you understand by financial
management?
Q2) what is GAAP? Explain in detail?
Q3) what are the different methods of
accounting?
Q4) discuss the accounting cycle in detail.
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Questions?
