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Accounting

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rakshit123

Accounting involves recording financial transactions, classifying and summarizing them, then analyzing, interpreting, and communicating the information to users. It is defined as the process of identifying, measuring, and communicating economic information to allow for informed judgments and decisions. The accounting process includes recording transactions, classifying them, summarizing, analyzing and interpreting, then communicating the results. Bookkeeping records transactions at a basic level, while accounting provides summarized and analyzed information for decision making.

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Accounting
1. Meaning of Accounting 2. Definition of Accounting 3. Accounting process 4. Need of Accounting 5. Difference b/w book keeping & Accounting
Accounting
Accounting is a primary concerned with recording of financial transaction , summarising them information are proprietors, creditors , debtors etc . Since accounting is a medium of communication , it is called the LANGUAGE OF BUSINESS .
Accounting
Accounting is the process of identifying ,measuring & communicating economic information to permit informed judgments and decisions by users of the information. -AMERICAN ACCOUNTING ASSOCIATION
Accounting
STEPS OF ACCOUTING PROCESS  Recording  Classifying  Summarising  Analysing & Interpreting  Communicating
ACCOUNTING PROCESS ↓ ↑ ↑ Financial transaction or event Recording Journal •Cash book •Sales book •Purchase return book •Sales return book •Journal proper Communicatin g to user Analysing & interpretation Summarising Trial balance Balance sheet Classifying
In ancient times , wants of men were very limited due to which the number of business transitions was also limited. Nevertheless , with the invention of money the speed of production & distribution got momentum , which has increased business activities.
BOOK KEEPING  Book keeping is concerned with financial transaction .  It is primary stage .  The objective of book keeping is to maintain systematic records of financial transactions.  this job routine is nature.  Junior staff do this. ACCOUNTING  Accounting is concerned with summarising the recorded transaction.  It is a secondary stage  The objective is of accounting is to ascertain net of operation.  This is analytical & dynamic .  Senior staff performs this function.
Accounting

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Accounting

  • 2. 1. Meaning of Accounting 2. Definition of Accounting 3. Accounting process 4. Need of Accounting 5. Difference b/w book keeping & Accounting
  • 4. Accounting is a primary concerned with recording of financial transaction , summarising them information are proprietors, creditors , debtors etc . Since accounting is a medium of communication , it is called the LANGUAGE OF BUSINESS .
  • 6. Accounting is the process of identifying ,measuring & communicating economic information to permit informed judgments and decisions by users of the information. -AMERICAN ACCOUNTING ASSOCIATION
  • 8. STEPS OF ACCOUTING PROCESS  Recording  Classifying  Summarising  Analysing & Interpreting  Communicating
  • 9. ACCOUNTING PROCESS ↓ ↑ ↑ Financial transaction or event Recording Journal •Cash book •Sales book •Purchase return book •Sales return book •Journal proper Communicatin g to user Analysing & interpretation Summarising Trial balance Balance sheet Classifying
  • 10. In ancient times , wants of men were very limited due to which the number of business transitions was also limited. Nevertheless , with the invention of money the speed of production & distribution got momentum , which has increased business activities.
  • 11. BOOK KEEPING  Book keeping is concerned with financial transaction .  It is primary stage .  The objective of book keeping is to maintain systematic records of financial transactions.  this job routine is nature.  Junior staff do this. ACCOUNTING  Accounting is concerned with summarising the recorded transaction.  It is a secondary stage  The objective is of accounting is to ascertain net of operation.  This is analytical & dynamic .  Senior staff performs this function.