Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
Basics of Accounting. Principles and concepts of Accounting
what is Double Entry System of Accounting?what Financial Statements?
Accounting is a process of identifying, recording, summarising and reporting economic information
to decision makers in the form of financial statements.
For more content and questions refer (Copy and Paste this link)
https://clickuniv.com/introduction-to-accounting/
Follow me on: https://twitter.com/Afzalindian
Here in this slide fundamentals of accounting are discussed. After studying this slide you will be able to know
Meaning and Definition of Accounting
Attributes (Characteristics) of accounting
Functions of Accounting
Accounting Process
Bookkeeping
Objectives of Accounting
Advantages of Accounting
Limitations of Accounting
Users of Accounting Information
Systems of Accounting
Basis of Accounting
Accounting for Entrepreneurs.
Presented by: Ms. Rand Marar, GOL Trainer
Socialize your Business, Maadi Public Library, Cairo, Egypt.
Organized by IRC, US-Embassy in Cairo
26 March, 2013
Introduction to Accounting
By. Prof Navneet Saxena
IBS Gurgaon
Objective:
At the end of this session you should be able to understand
Distinction among Financial Accounting, Cost Accounting and Management Accounting
Evolution of Accounting
Basic Concepts of Financial Accounting
Conventions of Accounting
Stages of Preparing Accounting Statements
From Input to Output
Users of Financial Statements
Advantages of Accounting
Generally Accepted Accounting Principles
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
Understand the difference between bookkeeping and accounting
Understand why business need to keep accounting records
Understand the meaning of of the terms assets, liabilities and capital
Understand and apply the accounting equation
Prepare a simple Balance Sheet.
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.
Accounting is a process that holds a record about financial aspects in written method or bookkeeping. In other words, we can say that Accounting is a process that keeps the information about the money being exchanged in any organization or business in writing.
For more content and questions refer (Copy and Paste this link)
https://clickuniv.com/introduction-to-accounting/
Follow me on: https://twitter.com/Afzalindian
Here in this slide fundamentals of accounting are discussed. After studying this slide you will be able to know
Meaning and Definition of Accounting
Attributes (Characteristics) of accounting
Functions of Accounting
Accounting Process
Bookkeeping
Objectives of Accounting
Advantages of Accounting
Limitations of Accounting
Users of Accounting Information
Systems of Accounting
Basis of Accounting
Accounting for Entrepreneurs.
Presented by: Ms. Rand Marar, GOL Trainer
Socialize your Business, Maadi Public Library, Cairo, Egypt.
Organized by IRC, US-Embassy in Cairo
26 March, 2013
Introduction to Accounting
By. Prof Navneet Saxena
IBS Gurgaon
Objective:
At the end of this session you should be able to understand
Distinction among Financial Accounting, Cost Accounting and Management Accounting
Evolution of Accounting
Basic Concepts of Financial Accounting
Conventions of Accounting
Stages of Preparing Accounting Statements
From Input to Output
Users of Financial Statements
Advantages of Accounting
Generally Accepted Accounting Principles
This powerpoint presentation is created by Gyanbikash.com for the students of class nine to ten from their accounting NCTB textbook for multimedia class.
Understand the difference between bookkeeping and accounting
Understand why business need to keep accounting records
Understand the meaning of of the terms assets, liabilities and capital
Understand and apply the accounting equation
Prepare a simple Balance Sheet.
Accounting is the recording of financial transactions plus storing, sorting, retrieving, summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having the formal education to carry out these tasks.
Accounting is a process that holds a record about financial aspects in written method or bookkeeping. In other words, we can say that Accounting is a process that keeps the information about the money being exchanged in any organization or business in writing.
Financial accounting is a method by which a company records and reports revenue, expenses, and income for a specific period. We follow strict guidelines to ensure that our financial statements are accurate and comply with statutory, financial, legal and regulatory requirements. The data in these reports helps outsiders perform a comprehensive financial analysis of company operations and allocate resources more effectively to business owners, investors, and creditors.
Yenesew Ferede - Welcome to the strange new world of accounting for ...lulumokenin
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and complexity of business and allegations of fraudulent financial reporting have recently sharpened the ever increasing attention to internal control and internal auditing (Karagiorgos et al. 2016). The developing role of the internal auditing is also reflected in its current definition, i.e. internal auditing is an independent, objective assurance and consulting activity designed to add value and improve an organization’s operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined
The globalization of economy, technological advancement, and cowe
Financial Accounting and Management accounting are the two branches of accounting.
Financial accounting stresses on giving true and a fair view of the financial position of the company to various parties.
On the contrary, management accounting aims at providing both qualitative and quantitative information to the managers, so as to assist them in decision making and thus maximizing the profit.
Financial Accounting is the branch of accounting which keeps track of all the financial information of the entity. Management Accounting is that branch of accounting which records and reports both the financial and nonfinancial information of an entity.
It is now very easy for accounting students to get detailed and logical solutions to accounting assignments or problems at a very reasonable cost and within a deadline. Our expert accounting tutors delivered excellent accounting help services to you. You 100% sure that we deliver what we promise!
The PPT consists of all the basics of Financial Accounting like Meaning, Importances, Branches, Users etc.
Accounting is the identifying , recording of financial transactions pertaining to a business, and it also refers to the process of summarizing, analyzing and reporting these transactions to various uders of accounting informations
Accounting Cycle.
Similar to Unit+43 +role+and+objectives+of+accounting (20)
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The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
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The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
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2. TOPICS COVERED
BUSINESS TRANSACTIONS
RECORDING BUSINESS TRANSACTIONS AND THE ACCOUNTING PROCESS
THE OBJECTIVES OF ACCOUNTING
WHAT ARE ACCOUNTS
WHO USES ACCOUNTS-INTERNAL NEEDS
WHO USES ACCOUNTS-EXTERNAL NEEDS
WHO PRODUCES ACCOUNTS
BUSINESS STATEMENTS
THE USE OT IT IN ACCOUNTS
SOCIAL AUDITING
3. BUSINESS TRANSACTIONS
Business activity involves purchasing
resources like materials, selling goods
etc.
Business transactions are activities that
happens in a business that affect the
money matter of a business.
4. RECORDING BUSINESS TRANSACTIONS AND THE
ACCOUNTING PROCESS
It is important for a business to keep accurate
records of these transactions.
Every single transaction must be recorded.
Book keepers are responsible for recording business
transactions.
6. When a transaction takes place it should be verified by a
document-an invoice, receipt etc..
From these documents the entries are made into company's books
Cashbook includes cash and bank transactions. Daybook includes
all the daily transactions whether cash or credit.
At the end of the month these entries will be totaled and
recorded in ledgers.
From the ledgers a trial balance will be prepared
Finally from the trial balance details the financial statements
that is the profit and loss account, balance sheet and the cash
flow statement is prepared.
ACCOUNTING PRTOCESS
7. Ledgers in accounting process
Ledgers form the basis of any book keeping.
A ledger account contains a record of business transactions
Examples of ledger accounts are cash, accounts receivable, inventory,
fixed assets etc
The ledger account may take the form of an electronic record, if an
accounting software package is used, or a page in a written ledger, if the
accounting records are kept by hand.
9. TRIAL BALANCE
A trial balance is a report that shows the total of all your
business's accounts, its assets, liabilities, income, costs and
capital, as at a given point in time. ...
The trial balance is called a 'trial balance' because there will
always be equal sums both sides of your trial balance.
10. The income statement shows the performance of the
business throughout each period, displaying sales
revenue at the very top.
Profit and loss account
The balance sheet displays the company’s assets,
liabilities, and shareholders’ equity at a point in time.
Assets – Everything you own / that is owed to you
Liabilities – Everything that you borrow / owe
Equity – The financial value of the business including
all money the business has made or lost from
operations, plus invested equity capital,
BALANCE SHEET
11. Cash flow statement
A cash flow statement shows how much cash is moving in and out
of your business over a period of time. This reflects the 'liquidity'
of your business.
Having enough cash available to pay your debts and buy
materials and assets is an important part of business planning. A
cash flow statement will quickly tell you if you are likely to have
any issues in this area.
12. Understand cash flow and profit & loss
account
Example: john sell you multiple cases of water, but you don’t pay him for
120 days. What does this mean for cash? Explanation: While john was
able to show revenue on the P&L, his cash balance didn’t increase because
john haven’t gotten paid yet. (This is good for profitability, but bad for
cash flow).
If on the other hand, we have an example where a customer paid us up
front for a year’s supply of water, our cash would increase a lot, but we
could only show 1/12 of that money each month on the P&L. (This is good
for cash flow, but shows lower revenue / profitability).
13. The objectives of accounting
summarized
Accounting facilitates the systematic management of the records
of the transaction and other financial data.
It gives an idea about the chances of profitability or failure or
losses.
The process assists the management by helping them to make
the best decisions. besides that, accounting ascertains the
financial position of an organization.
It also helps in the evaluation of the employee and their working
efficiency, in addition, communicating and spreading the
accounting information to the user.
Accounting contributes the biggest to any organization by
preventing fraud and prevents profit risks.
14. What are accounts?
All business produce ACCOUNTS. These are statements that
provide financial information about a business. A statement
might include information about the revenue, costs and profit
that a business records during the year. This is called a profit
and loss account or income statement.
Another statement called balance sheet provide information
about debts, capital and the assets of a business
Finally, a cash flow statement shows the flow of cash into and
out of the business during the year.
15. THE USERS OF ACCOUNTS/ FINANCIAL
INFORMATION
Businesses produce accounts because they are legally obliged.
Larger companies need to produce accounts to provide
information for external users such as shareholders and
creditors.
Accounts may also be used internally inside the business such
as Management, employees owners.
The external users include Tax authorities, auditors, registrar
of companies, bankers, suppliers, competitors, local
community, the media, investors ,financial analysts and the
government.
16.
17. MANAGEMENT(INTERNAL USER)
The main users of financial information are likely to be management. The
financial information is used for the following purposes:
a) Recording. The values of all of a company's resources and lists of
its transactions can be recorded
b) Analysis and evaluation. It is possible to evaluate the performance
of the company, make comparisons with competitors and keep a
record of the firm's progress over a period of time.
c) Control. Financial information helps the control of money flowing
in and out of the business.
d) Decision making. One of the most important reasons why
businesses need financial information is to help managers make
deas1ons. financial information is quantitative data which is very
useful when making decisions.
18. Employees(internal users)
employees, are another group of people who might need
financial information. During wage bargaining, information about
the profitability, could be used to decide if management can
meet a particular wage demand.
The owners will have a vested interest in the company’s
financial position. They will naturally assess its performance.
OWNERS(INTERNAL USERS)
19. Tax authorities( external users)
Customs and Excise may require access to business accounts
when calculating VAT and excise duties owed by businesses.
Every year the accounts of limited companies have to be
checked by an independent firm of accountants and
registered auditors. The process of checking the authenticity
of accounts is called AUDITING
Auditors (external users)
20. Registrar of Companies (external users)
All limited companies have to register with the Registrar of
Companies when they are formed. One of the conditions of
registration is that they submit a copy of their final accounts
every rear.
When deciding whether to lend money to a business, bank
managers will want to know the financial status of the company.
Bankers (external users)
21. Suppliers (external users)
Many businesses buy goods and services using trade credit.
Accounts may provide suppliers with useful information regarding
the ability to pay for goods bought on credit
competitors may wish to analyze the financial status in order to
make comparisons.
Sometimes people might have an interest in a business that is
located in their community. For example, the local community
might use accounts to see if the company has any expansion
plans that might create jobs in the area.
Competitors(external users)
Local community(external users)
22. The media(external users)
Business and commerce is often the subject of newspaper, TV and
radio reports. There are specialists that focus on business
information. For example, The Financial times is a newspaper
devoted almost entirely to business and financial reports. Company
accounts might be used to help give audiences and readers advice on
buying shares for example.
Accounts are also used by potential investors and financial
analysts. They might be used to help make decisions when
purchasing shares in different companies.
Investors and financial analysts(external users)
23. Government(external users)
The government may have an interest in the companies financial
information. This information is used by the government to
monitor the progress of the economy and help evaluate the
success of its economic policies.
24. Who produces accounts ?
Accountant are responsible for supplying and using financial
information.
Businesses which produce their final accounts must have them
checked by an independent firm of accountants. They are called
auditors. This audit is performed annually.
There are two branches of accounting –Financial Accounting and
Managerial accounting.
Two branches of accounting
25. The role of financial accountants is to make sure that a
company’s accounts are 'true and fair' record of its
transactions . They supervise the book keeping process .
Financial accountants are concerned with the past.
Financial Accounting
26. Management Accounting
Management accountants are more concerned with the
future.
They do need knowledge of accounting concepts and
methods, but they also require training in economics and
management science.
Such accountants are involved in decision making and
problem solving in the business.
They are responsible for producing cost and financial
data, interpreting financial statements and preparing
forecasts and budget.
27. Business statements
At the end of a trading year all business produce final accounts.
These business statements include:
Balance sheet: a balance sheet provides information about the
company's funds and how they are used in business. It lists assets
liabilities and the capital of the business. A balance sheet
describes the financial position of a business at a particular point
of time.
Profit and loss account/income statement: provides a summary
of the years trading activities stating the revenue provides from
a sales (the turnover), business costs, profit/loss and how the
profit is used.
28. Cash flow statement Certain companies are required to produce cash flow
statements in their accounts. A cash flow statement shows the flows of cash
into and out of a business in a trading t year.
Notes to the accounts The balance sheet and profit and loss account show
summarized information. 'Notes to the accounts' are more detailed analysis
of some entries in these statements.
Directors' report This statement, written by the directors, is required by
law. It contains information which might not be shown in other financial
statements, such as the number of employees, changes of personnel on the
board of directors and any special circumstances arising.
Chairperson's statement One of the chairperson's roles is to communicate
with the shareholders. This can be done by making a statement in the annual
report
Auditor's report: Auditors must make a brief report to confirm that the
accounts give a 'true and fair vie"' of the firm's financial position, assuming,
of course, that they do!
Statistics: Companies often include tables and graphs in their annual report.
29. Use of IT in accounts
Many businesses now use information technology ( IT) in their accounts
department. Some of the its use are:
1. Keeping records of transactions with all customers showing up to date
balances on all accounts
2. Keeping records of all transactions with all suppliers showing up to
date balances on all accounts
3. Producing stock details
4. Producing balance sheets
5. Producing profit and loss accounts
30. Advantages of computerized systems
Speed. Transactions can be processed much more quickly in
computerized than in manual
Capacity: billions of transactions can be recorded each year and
is easily accessible.
Efficiency: as large volumes of data can be processed quickly,
computer systems require a less number of people. Therefore
the cost can be reduced.
Accuracy: they are more accurate than manual systems wen
processing data.
Security: using passwords prevent unauthorized access.
User friendly: its very user friendly so the staffs do not need
detailed knowledge of bookkeeping to be able to input data.
31. Disadvantages of computerized systems
Advantages of computerized systems
Cost: the cost of purchasing and upgrading computer hardware
and software is expensive
Technical problems: there is a wide range of computer systems
and it is not always easy for business to choose the most
appropriate package.
Industrial relations: the use of computerized systems may cause
industrial relation problems. If staff see technology as a threat
to their jobs, they might not cooperate with management.
Security: although security can be increased by the use of
passwords, employees or outsiders might be able to hack into the
system
Operator error: computer systems are not only effective, if data
is entered correctly. If wrong data is entered the reports that are
generated will also be inaccurate. This problem is sometimes
described as “GIGO” Garbage in, garbage out.
32. Social Auditing
This is a way of measuring and reporting on a company’s
social and ethical performance.in an effort to become
better citizens some companies carry out a SOCIAL
AUDIT.
The output of the social audit provides information on
how well a company is keeping a balance
between social responsibility and making profits.
Another reason for conducting it is to establish a positive
image of the company in society to attract more
customers.
33. STEPS IN SOCIAL AUDITING
1. Define the scope: Social auditing consists of the auditing of various
departments and activities at the same time. Therefore, it is important
for the auditor to establish the boundaries that mean he should decide
what should be audited and what should not be audited during the
auditing process.
2. Choose the people participating in the process: will decide who should
be included in the process whether they are the management of the
organization or stakeholders an also define up to what percent a person
would be involved in the process.
3. Define the key issues which are required to be cross-checked in the
process and a data collection procedure for those issues: key issues
which are required to be analyzed and tackled through the social audit
process should be defined. Define what information should be collected
for the particular issue and what methods should be opted to collect
information.
34. STEPS IN SOCIAL AUDITING
4. Generate a report for findings and verify it: In the next step,
you should generate a report about the findings of social auditing.
Social auditing reports might be or might not be published
5. Present the report: The main purpose of conducting a social
audit is to present the report about the work process of an
organization. The report is presented to designated management or
shareholders, and sometimes reports are presented publicly.