Introduction of Accounting.

Accounting

Introduction of Accounting.

Accounting refers to the practice of systematically recording the financial transactions of a business, analyzing the information for internal development by the management, summarizing and interpreting them for the sake of reporting to the concerned state authorities and the stakeholders of the firm.

Accounting, is the production of financial records about an organization. Accountancy generally produces financial statements that show in money terms the economic resources under the control of management; selecting information that is relevant and representing it faithfully. The principles of accountancy are applied to accounting, bookkeeping, and auditing.

Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people. Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditors.


It includes:-

a) Financial Accounting:- Provides financial statements based on generally accepted accounting principles (GAAP) and the focus is on reporting to external parties

b) Management/Cost Accounting
:- Mainly used by management for identifying the overheads, keeping track of the goals and solving the problems.


Financial information is mainly summarized by:-

1. Balance Sheet:- Gives the value and nature of a firm’s assets, liabilities and owners’ equity by describing the source of funds and the application of funds as on a given date.

2. Income Statementt:- Profit/Loss for a given time period by including both cash and non-cash transactions.

3. Cash Flow statement
t:- Assesses the liquidity of the firm by estimating the net cash flow for a given time period

Accounting, being one of the key divisions of any business is managed by bookkeepers and qualified accountants with designations such as Chartered Accountant (India) / Certified Public Accountant (USA).


Other Types of accounting :-

1) Accounting systems‎.
2) Financial accounting‎.
3) Management accounting.‎
4) Environmental accounting.
5) Forensic accounting.
6) Fund accounting.
7) Governmental accounting.
8) Management accounting.
9) Management accounting principles.
10) Personal environmental impact accounting.
11) Product control.
12) Project accounting.
13) Resource consumption accounting.
14) Social accounting.
15) Sustainability accounting.
 
Accounting

Introduction of Accounting.

Accounting refers to the practice of systematically recording the financial transactions of a business, analyzing the information for internal development by the management, summarizing and interpreting them for the sake of reporting to the concerned state authorities and the stakeholders of the firm.

Accounting, is the production of financial records about an organization. Accountancy generally produces financial statements that show in money terms the economic resources under the control of management; selecting information that is relevant and representing it faithfully. The principles of accountancy are applied to accounting, bookkeeping, and auditing.

Today, accounting is called "the language of business" because it is the vehicle for reporting financial information about a business entity to many different groups of people. Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditors.


It includes:-

a) Financial Accounting:- Provides financial statements based on generally accepted accounting principles (GAAP) and the focus is on reporting to external parties

b) Management/Cost Accounting
:- Mainly used by management for identifying the overheads, keeping track of the goals and solving the problems.


Financial information is mainly summarized by:-

1. Balance Sheet:- Gives the value and nature of a firm’s assets, liabilities and owners’ equity by describing the source of funds and the application of funds as on a given date.

2. Income Statementt:- Profit/Loss for a given time period by including both cash and non-cash transactions.

3. Cash Flow statement
t:- Assesses the liquidity of the firm by estimating the net cash flow for a given time period

Accounting, being one of the key divisions of any business is managed by bookkeepers and qualified accountants with designations such as Chartered Accountant (India) / Certified Public Accountant (USA).


Other Types of accounting :-

1) Accounting systems‎.
2) Financial accounting‎.
3) Management accounting.‎
4) Environmental accounting.
5) Forensic accounting.
6) Fund accounting.
7) Governmental accounting.
8) Management accounting.
9) Management accounting principles.
10) Personal environmental impact accounting.
11) Product control.
12) Project accounting.
13) Resource consumption accounting.
14) Social accounting.
15) Sustainability accounting.

Hey freind, as we all know that accounting is the most crucial part of any department in order to keep the record of all financial transaction within a company. If you want more detailed information then please download my presentation.
 

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