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Accountancy

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Bouhouhou Zighmi
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7 views2 pages

Accountancy

Uploaded by

Bouhouhou Zighmi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Lesson 1: Accountancy

Read the passage, then do the activities.

Accounting, also known as accountancy, is the measurement,


processing, and communication of financial and non financial
information about economic entities such
as businesses and corporations. Accounting, which has been called the
"language of business", measures the results of an organization's
economic activities and conveys this information to a variety of
stakeholders, including investors, creditors, management,
and regulators.Practitioners of accounting are known as accountants.
The terms "accounting" and "financial reporting" are often used as
synonyms.
Accounting can be divided into several fields including financial
accounting, management accounting, tax accounting and cost
accounting. Accounting information systems are designed to support
accounting functions and related activities. Financial accounting
focuses on the reporting of an organization's financial information,
including the preparation of financial statements, to the external users
of the information, such as investors, regulators and suppliers; and
management accounting focuses on the measurement, analysis and
reporting of information for internal use by management.The
recording of financial transactions, so that summaries of the financials
may be presented in financial reports, is known as bookkeeping, of
which double-entry bookkeeping is the most common system.[8]
Accounting has existed in various forms and levels of sophistication
throughout human history. The double-entry accounting system in use
today was developed in medieval Europe, particularly in Venice, and
is usually attributed to the Italian mathematician and Franciscan
friar Luca Pacioli. Today, accounting is facilitated by accounting
organizations such as standard-setters, accounting
firms and professional bodies. Financial statements are usually audited
by accounting firms,and are prepared in accordance with generally
accepted accounting principles (GAAP).GAAP is set by various
standard-setting organizations such as the Financial Accounting
Standards Board (FASB) in the United Stateand the Financial
Reporting Council in the United Kingdom. As of 2012, "all major
economies" have plans to converge towards or adopt the International
Financial Reporting Standards (IFRS).

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