Introduction to accounting

DEFINITIONS OF ACCOUNTING

Accounting Standards Council – Accounting is a service

activity. Its function is to provide quantitative
information, primarily financial in nature, about
economic activities that is intended to be useful in
making economic decisions.

Financial Accounting Standards Board - an information

system that measures, processes and communicates
financial information about an economic entity.

American Accounting Association - is the process of

identifying, measuring and communicating economic
information to permit informed judgements and
decisions by users of the information.

American Institute of Certified Public Accountants - 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 a financial
character, and interpreting the results thereof.

NATURE OF ACCOUNTING

1. PROCESS

2. ART AND DISCIPLINE

3. DEALS WITH FINANCIAL INFORMATION AND

TRANSACTIONS

4. IS MEANS NOT AN END

5. INFORMATION SYSTEM

FUNCTIONS OF ACCOUNTING

1. KEEP SYSTEMATIC RECORD OF BUSINES

TRANSACTIONS

2. PROTECTING PROPERTIES OF THE BUSNINESS

3. COMMUNCATING RESULTS TO VARIOUS PARTIES IN

OR CONNECTED WITH THEBUSINESS

4. MEETING LEGAL REQUIREMENTS

PHASES OF ACCOUNTING

1. MEASURE

2. RECORD

3. CLASSIFY AND SUMMARIZE

4. INTERPRET

HISTORY OF ACCOUNTING