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    Introduction To Accounting PDF

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    Kc B.
    This document provides an introduction to accounting. It defines accounting as the process of identifying, measuring and communicating financial information. The key functions of accounting are to keep records of business transactions, protect business assets, communicate financial results, and meet legal requirements. The history of accounting began around 4000 BC with clay tokens used to track wealth and developed over time to include the abacus, double-entry bookkeeping in the 15th century, and the modern accounting profession.

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    Introduction To Accounting PDF

    Uploaded by

    Kc B.
    69 views17 pages
    This document provides an introduction to accounting. It defines accounting as the process of identifying, measuring and communicating financial information. The key functions of accounting are to keep records of business transactions, protect business assets, communicate financial results, and meet legal requirements. The history of accounting began around 4000 BC with clay tokens used to track wealth and developed over time to include the abacus, double-entry bookkeeping in the 15th century, and the modern accounting profession.

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    1.-INTRODUCTION-TO-ACCOUNTING.pdf

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    This document provides an introduction to accounting. It defines accounting as the process of identifying, measuring and communicating financial information. The key functions of accounting are to keep records of business transactions, protect business assets, communicate financial results, and meet legal requirements. The history of accounting began around 4000 BC with clay tokens used to track wealth and developed over time to include the abacus, double-entry bookkeeping in the 15th century, and the modern accounting profession.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    69 views17 pages

    Introduction To Accounting PDF

    Uploaded by

    Kc B.
    This document provides an introduction to accounting. It defines accounting as the process of identifying, measuring and communicating financial information. The key functions of accounting are to keep records of business transactions, protect business assets, communicate financial results, and meet legal requirements. The history of accounting began around 4000 BC with clay tokens used to track wealth and developed over time to include the abacus, double-entry bookkeeping in the 15th century, and the modern accounting profession.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 17

    INTRODUCTION TO

    ACCOUNTING
    PREPARED BY:
    MR. JUAN LUCAS C. GARCIA
    • To define accounting and explain its nature and functions
    • To understand the history and development of accounting
    • To have an overview of double entry bookkeeping

    LEARNING OBJECTIVES
    Accounting is a service activity. Its function is to provide
    quantitative information, primarily financial in nature,
    about economic entities, that is intended to be useful in
    making economic decisions.

    -ACCOUNTING STANDARDS COUNCIL (ASC)

    WHAT IS ACCOUNTING?
    Accounting is the process of identifying, measuring and
    communicating economic information to permit informed
    judgment and decision by users of the information.

    -AMERICAN ACCOUNTING ASSOCIATION (AAA)

    WHAT IS ACCOUNTING?
    Accounting is the art of recording, classifying and,
    summarizing in a significant manner and in terms of
    money, transactions and events which are, in part at least,
    of financial character, and interpreting the results thereof.

    -AMERICAN INSTITUE OF CERTIFIED PUBLIC


    ACCOUNTANTS (AICPA)

    WHAT IS ACCOUNTING?
    1. Accounting is a process.
    2. Accounting is an art.
    3. Accounting deals with financial information and
    transactions.
    4. Accounting is a means and not an end.
    5. Accounting is an information system.

    NATURE OF ACCOUNTING
    From the foregoing definitions, the main functions of
    accounting can be summarized as follows:
    1. Keeping systematic record of business transactions
    2. Protecting properties of the business
    3. Communicating results to various parties in or
    connected with the business
    4. Meeting legal requirements

    FUNCTIONS OF
    ACCOUNTING
    BRIEF HISTORY OF ACCOUNTING

    • Dating back about 4,000 B.C. in Mesopotamia, the first


    accounting system probably consisted of stones used to
    represent wealth.
    • Accounting began as a simple system of clay tokens to
    keep track of goods and animals, before developing
    complex transactions and other financial information.

    HISTORY OF ACCOUNTING
    CLAY TOKENS IN
    MESOPOTAMIA
    3,300 B.C.

    HISTORY OF ACCOUNTING
    EARLY ACCOUNTING

    • Accountancy has its roots in the earliest history of


    civilization. With the rise of agriculture and trade, people
    needed a way to keep track of their goods and of their
    transactions.
    • In between 300-500 B.C., the Chinese developed the
    abacus, a tool for counting and calculating.

    HISTORY OF ACCOUNTING
    INTRODUCTION TO DOUBLE ENTRY ACCOUNTING

    • During and after the Crusades, European trade markets


    opened up to Middle Eastern trade, and European
    merchants, especially in Genoa and Venice, became
    increasingly wealthy.

    HISTORY OF ACCOUNTING
    • In 1494, Fr. Luca Pacioli published a math book entitled
    “Summa de Arithmetica, Geometria, Proportioni et
    Proportionalita,” which
    contained a description of
    double entry accounting
    which is used as a valuable
    tool for keeping track of
    detailed financial
    information.

    HISTORY OF ACCOUNTING
    HISTORY OF
    ACCOUNTING
    THE INDUSTRIAL REVOLUTION AND THE RISE OF
    PROFESSIONAL ACCOUNTANCY

    • Accounting developed further advent of the Industrial


    Revolution in the late 18th century.
    • It helps business owners and managers understand their
    business and make decisions to achieve cost efficiency
    and profit maximization.
    • This was then people began to specialize in accountancy.

    HISTORY OF ACCOUNTING
    MODERN PROFESSIONAL ACCOUNTING

    • Today, accounting is a business unto itself, with


    thousands of practitioners worldwide and a large number
    of professional organizations and official guidelines to
    codify practices and requirements.
    • The Generally Accepted Accounting Principles, or
    GAAP, set forth the standards by which public
    accountants must do business.
    • Every country has a similar set of accounting guidelines.

    HISTORY OF ACCOUNTING
    • INTRODUCTION TO FINANCIAL STATEMENTS
    • USERS OF THE FINANCIAL STATEMENTS
    - INTERNAL USERS
    - EXTERNAL USERS

    NEXT TOPIC

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