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Class 1

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5 views13 pages

Class 1

Uploaded by

Kaustabh Saha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ENROLL in JAIIB

This Class
Now at 81%
Discount –
AFM
Use Discount
Code Y183
ENROLL IN THIS CLASS NOW AT 81% DISCOUNT , USE DISCOUNT CODE - Y183

Accounting

 Accounting is the systematic


process of identifying,
measuring, recording, classifying
summarizing, interpreting and
communicating financial
information.
The American Institute of Certified Public
Accountants (AICPA) defines accounting
ENROLL IN THIS as:
CLASS NOW AT
"the art of recording, classifying, and
81% DISCOUNT summarizing in a significant manner and in
USE DISCOUNT terms of money, transactions and events

CODE - Y183 which are, in part at least of financial


character, and interpreting the results
thereof."
Accountancy, thus, involves the following:
 Systematic classification of business transactions, for
recording them in the books of account.
 Recording of events and transactions in the books of
account, called bookkeeping.
 Summarizing of the recorded events, i.e., preparation of a
trial balance from a ledger and, subsequently, the
preparation of balance sheet and the profit and loss
account, from the trial balance.
 Interpreting the financial transactions from the recorded
data and the financial statements.
 Financial accounting : It assists keeping a
systematic record of financial transactions
the preparation and presentation of financial
reports in order to arrive at a measure of
Branches of Accounting organizational success and financial
soundness.

 Cost Accounting : It assists in analyzing the


expenditure for ascertaining the cost of
various products manufactured or services
rendered by the firm and fixation of prices
thereof.
Management Accounting : It deals with the provision
of necessary accounting information to people within
the organisation to enable them in decision-making,
Branches of Accounting
planning and controlling business operations.
Stewardship accounting : It is associated with the
need of business owners to keep records of their
transactions, the property and tools they own, debts
they owe, and the debts others owe them.
• Human resource accounting : Human
resource accounting is the process of
identifying and reporting investments
made in the human resources of an
organization that are presently
Branches of Accounting
unaccounted for in the conventional
accounting practice.
• Inflation Accounting : Inflation
accounting is concerned with the
adjustment in the value of assets
(current and fixed) and of profits, in the
light of changes in the price level
1. WHICH OF THE FOLLOWING WILL NOT BE
RECORDED IN THE BOOKS OF ACCOUNT?

A. Sale of Goods
B. Quality of Staff
C. Payment of Salary
D. Purchase of Goods
2. THE LAST STEP OF ACCOUNTING AS A
PROCESS OF INFORMATION IS ___.

A. Recording the transaction


B. Preparation of financial statements
C. Communication of information
D. Analysis and Interpretation of Information
3. THE BASIC FUNCTION OF FINANCIAL
ACCOUNTING IS ___.

A. Record all business transactions


B. Interpret financial data
C. Assist the management
D. None of these
4. WHICH OF THE FOLLOWING IS NOT A BUSINESS
TRANSACTIONS?
A. Purchase of Goods for resale amounted to Rs. 50,000.
B. Paid Salaries and Wages amounted to Rs. 10,000.
C. Paid rent for office premises Rs. 4000.
D. Purchased LCD for personal use
5. ACCOUNTING IS DESCRIBED AS _____.

A. Recording of business activities

B. Art of business

C. A method of fixing up responsibility

D. Code of transactions

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