Scribd
Upload
36 views16 pages

Basic

Accounting provides quantitative information about economic activities to help decision makers. It is called the "language of business". The basic purpose of accounting is to provide useful information for making economic decisions. Accounting links decision makers to economic activities and their results. It involves interpreting, recording, classifying, and communicating financial information to internal and external users to aid various types of decisions.

Uploaded by

OSAMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
36 views16 pages

Basic

Accounting provides quantitative information about economic activities to help decision makers. It is called the "language of business". The basic purpose of accounting is to provide useful information for making economic decisions. Accounting links decision makers to economic activities and their results. It involves interpreting, recording, classifying, and communicating financial information to internal and external users to aid various types of decisions.

Uploaded by

OSAMA
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 16

Accounting

“ Accounting is simply the means by which


we measure and describe the result of
economic activities”
Often Called
“ the Language of Business”

1-1
1-2
1-3
1-4
Purpose of Accounting

The basic purpose of accounting is to


provide decision makers with information
useful in making economic decisions.

1-5
Accounting from a User’s
Perspective
Individual need to understand:

The nature of economic activities that


accounting information describes
The assumption and measurement techniques
involved in developing accounting information
The accounting information that is most relevant
for various types of decisions

1-6
The
Accounting
Process

Accounting links
decision makers
with economic Accounting
Economic activities  and Information
Activities
with the results of
their decisions.

Reported
Results of
Decision
Actions Actions
(decisions)
Makers (decisions)
1-7
Types of Accounting Information

Financial Tax

Management

1-8
Basic Functions of an
Accounting System
 Interpret  Classify
and record similar
business transactions
transactions. into useful
reports.
 Summarize
and
communicate
information to
decision
makers.
1-9
Branches of Accounting

Financial Cost
Accounting Accounting

Managerial or
Management
Accounting

1-10
Financial Accounting
Information
Financial Accounting Provides information
about Financial resources, obligation, and
activities of an enterprise.

Financial Obligation at Result of


Position point in time Operations

1-11
External Users of Accounting
Information
•Owners
•Creditors
•Potential investors
•Labor unions
•Governmental agencies
•Suppliers
•Customers
•Trade associations
•General public

1-12
The primary financial statements.

Balance Income
Sheet Statement

Statement
of Cash
Flows
1-13
Management Accounting Information
Create and use internal accounting
information not only for exclusive use
inside the organization but also to share
with external decision makers.

Example:
A producer may design an accounting
information system for suppliers detailing
its production plan.
1-14
Internal Users of Accounting
Information
•Owners
•Board of Director
•CEO & CFO
•Vice-presidents (information
services, human resources, ethics
and so forth)
•Business unit managers
•Plant managers
•Store managers
•Line supervisors

1-15
Careers in Accounting

Public Accounting
Management Accounting
Governmental Accounting
Accounting Education

1-16

You might also like