This document provides an introduction to accounting. It defines accounting according to the AICPA as recording, classifying, and summarizing financial transactions and interpreting the results. The key functions of accounting are identified as recording, classifying, summarizing, analysis, interpretation, and communication. Accounting objectives are maintaining business records, calculating profit/loss, depicting financial position, and providing information to various user groups. Types of accounting information users are also outlined.

1. INQUIRY TRAINING MODEL

2. WELCOME

3. UNIT :
INTRODUCTION
OF
ACCOUNTING

5. ACCOUNTING
According toe the American Institute
of Certified Public Accountants(AICPA)
“Accounting is an art of
recording,classifying,and summarizing in a
significant manner in terms of money
transactions in part at least of a financial
character and interpreting the results there
of”

6. Recording
Classifying
Summarizing
Analysis and Interpretation
Communication

7.  Maintained of record of business
 Calculation of profit or loss
 Depiction of financial position
 Making information various group

8. Explain the
Accounting,Definition,Function,and
Objectives.

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13. TYPES OF ACCOUNTING
INFORMATION

14. Accounting information can be
classified on the basis of the
users of such information.

15. INVESTORS
LENDERS
MANAGEMENT
EMPLOYEES
SUPPLIERS
CUSTOMERS

16. Investors are the suppliers of finance. Financial
statement and financial reports constitute the
end product in the accounting process .

17. Lenders are the banks and financial institutions
and other individuals who have supplied funds
to the business.

18. Accounting information helps the manager
for planning and controlling the operations
of the business.

19. Accounting information is very helpful to the users
for understanding financial position of the firm.

20. Financial reports gives vital information on
utilization of fund and financial health.

21. Government require information to regulate
business practices, implement policy. initiatives
charge appropriate taxes etc.

22. State the types of accounting information
required by long term lenders.

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26. UNIT :
INTRODUCTION OF
ACCOUNTING

28. RELIABILITY
RELEVANCE
UNDERSTANDABILITY
COMPARABILITY

29. Accounting information should reliable

30. Accounting information should be available
in time and must be right

31. Accounting information should be
understandable to the users

32. Accounting information should be comparable for
a period of time between two or more entities

33. Ram are a senior accountant of Saravana Enterprises Ltd
what three steps would you take your company's financial
statements understandable and decision useful

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36. WELCOME

37. UNIT :
INTRODUCTION
OF
ACCOUNTING

39. Accounting is an Information system which
receives data inputs, processes the same and
gives its output in the form of information.

40. Accounting includes book keeping as its
preliminary function. Book keeping consists of
recording transactions.

41. DIFFERENCE BETWEEN
BOOK KEEPING AND ACCOUNTING
BOOK KEEPING ACCOUNTING
 The objective of book
keeping is to prepare
original books of
accounts
 It has limited scope
 It is restricted to clerical
work of recording
transactions
 Book keeping has to
depend on accounting
for making the
accounting records
 The objective of
accounting is to record
analysis and interpret
the business
transaction
 It has wider scope
 It is concerned with
lower level, medium
level and top level
management
 Accounting has to
depend on book keep in
for getting the records

42. Explain the difference between Book keeping
and Accounting.

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