Accounting is a systematic process of identifying, measuring, recording, classifying, summarising, interpreting and communicating the financial information.
Process Functions of Accountin . 1)|dentifying financial transactions and events
2) Measuring the identified transactions 3) Recording
4) Classifying
5) Summarising
6) Analysing
7) Interpreting
8) Communicating
Branches of Accountin: 1)Financia| Accounting 2)Cost Accounting
3) Management Accounting
4)Auditing
5)Tax Accounting
6)Fund Accounting
7) Government Accounting
Users of Accountin . Information:
A. Internal users
Top, middle and lower levels executives in the organizations are the internal users.
Examples of internal users are:3) Owners,
b) Management,
0) Employees & Workers.
B. External users External users may have direct or indirect interest in accounting information 80, external users are classified as 1) Users having direct interest. Examples of External users having direct interest are:a) Creditors, b) Investors, 0) Employees d) Tax authorities, e) Consumers, f) Foreign entrepreneurs.
2) Users having indirect interest. Examples of External users having indirect interest are:a) Regulatory agencies, (Government and their agencies) b) Public c) Researchers d) Print and Electronic media.
Objectives of Accounting.
1) Record of financial transactions and events,
2) Determine profit or loss,
3)Accounting is helpful in ascertaining the financial position of the business. 4)Accounting provides useful information to its users.
5) Protecting business assets.
Book-Keeging
The art of recording business transactions in a set of books is termed as book-keeping.
Book-Keeping is a part of accountingBeing a process of recording financial transactions and events in the books of accounts.
It involves:Identifying, Measuring, Recording and Classifying.
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