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Thesystematicrecording,
reporting,
and
typicallyrequiredto
regulations,
Accounting
accounting
such
follow
as
Principles.
is
known
as
thisindividualis
asetofrules
theGenerally
Accounting
and
Accepted
allows
Accounting defined
02/25/15
The
American
Accounting
Association define accounting
as follows:
The process of identifying
measuring,
and
communicating
economic
information
to
permit
informed
judgments
and
decisions by users of the
Rajinder kaur, Dept. of
Management Studies (MIMIT)
Accounting Systems
Objectives of an accounting system:
To process the information efficiently-at low
cost
To obtain reports quickly
To ensure a high degree of accuracy
To minimize the possibility of the theft and
02/25/15
fraud
Accounting Cycle
1. Analyze transaction
2. Journalize original
entries
3. Post journal entries to
ledger
4. Identify, journalize and
post adjusting entries
5. Journalize and post
closing entries
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6. Prepare financial
Rajinder kaur, Dept. of
statements
Branches of Accounting
Financial
accounting-
information
and
government
advisers,
other
creditors,
agencies,
investment
etc.)
parties.
Information
internationally
Generally
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Accepted
known
as
Accounting
5
Management Accounting
Management accounting- information gathered is
primarily for the use of internal management. Such
information is used for management planning and
control.
Management accounting or managerial accounting is
concerned with the provisions and use of accounting
information to managers within organizations, to provide
them
with
the
basis to
make
informed
business
Cost Accounting
Cost Accounting-- a branch of accounting
dealing
with
allocation,
the
classification,
summarization
and
recording,
reporting
of
Quantitative
information
Operating
informatio
n
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Accountin
g
informatio
n
Financial
Accounti
ng
Non-accounting
information
Manageme
nt
Accountin
g
8
Operating Information
Constitutes the largest quantity of
accounting information; it provides the
basic data for both managerial and
financial accounting.
Financial Information
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Managerial Information
Used internally for planning,
implementation and control. This
accounting information is prepared to
aid mangers
THREE MANAGEMENT FUNCTION
1.Planning
2.Implementation
3.Control
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10
Users of Information
Owners
Management
Creditors
Government
Prospective owners and
prospective creditors
Employees
Public
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11
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12
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13
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14
Sundry
(adj.)consisting of a haphazard assortment
of different kinds
Synonyms:
Assorted,miscellaneous,mixed,motley
EXAMPLE: It is Sunday you can do various
things !!
EXAMPLE: SUN can DRY different kinds of
Rajinder
Dept. of
wetkaur,stuff
02/25/15
15
Management Studies (MIMIT)