Recommended
More Related Content
Similar to lec 1 Introduction of Financial Accounting.pptx
Similar to lec 1 Introduction of Financial Accounting.pptx (20)
Recently uploaded
Recently uploaded (20)
lec 1 Introduction of Financial Accounting.pptx
- 1. Introduction of Financial Accounting • Outlines: • Definition of accounting • Types of accounting • Basic rules of debit and credit • Accounting equation
- 2. Type of accounting and definition • Accounting: is the process of recording financial transactions pertaining to a business in the term of money. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. • • Management accounting: also called managerial accounting or cost accounting, is the process of analyzing business costs and operations to prepare internal financial report, records, and account to aid managers' decision making process in achieving business goals. • Financial accounting: is the process of preparing financial statements that companies’ use to show their financial performance and position to people outside the company, Including investors, creditors, suppliers, and customers.
- 4. Rules of debits and credits
- 5. Cont….
- 6. Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP). Generally Accepted Accounting Principles Relevant Information Affects the decision of its users. Reliable Information Is trusted by users. Comparable Information Is helpful in contrasting organizations.
- 7. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin The Securities and Exchange Commission is the government group that establishes reporting requirements for companies that issue stock to the public. Setting Accounting Principles Financial Accounting Standards Board is the private group that sets both broad and specific principles.
- 8. © The McGraw-Hill Companies, Inc., 2005 McGraw-Hill/Irwin