ACCOUNTING 1
Purpose of Accounting
The purpose of accounting is to accumulate and report on
financial information about the performance, financial position, and
cash flows of a business.
INTRODUCTION
Nature of Accounting
We know Accounting is the systematic recording of financial
transactions and presentation of the related information of the
appropriate persons. The basic features of accounting are as follows:
Purpose of Accounting
The purpose of accounting is to accumulate and report on
financial information about the performance, financial position, and
cash flows of a business.
INTRODUCTION
Nature of Accounting
We know Accounting is the systematic recording of financial
transactions and presentation of the related information of the
appropriate persons. The basic features of accounting are as follows:
1. Accounting is a process
2. Accounting is an Art
3. Accounting is a means and not an end
4. Accounting deals with financial information and transactions
5. Accounting is an information system
INTRODUCTION
Functions of Accounting
Accounting is basically concerned with:
- recording of the business transactions
- designing the types of records to be maintained
- preparing the reports on the basis of those recorded data and
transactions and interpreting those reports
- Accounting is concerned with Communication of the results of
the recorded transactions in the form of Final Accounts
consisting of the Profit and Loss Account with different sections
and the Balance Sheet with a number of reports and
statements affixed at the end. Thus, the following are the main
functions of Accounting:
INTRODUCTION
Functions of Accounting
Accounting is basically concerned with:
1. Record Keeping
2. Protecting of Properties
3. Communication of Results
4. Meeting Legal Requirement