Accounting (2)

Dr. Mohiy Samy El-Shabasy

Associate Professor, Accounting Department
Faculty of Commerce and Business Administration
Helwan University

lectures in (Accounting 2)
2024

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 lecture (1)
Dr. Mohiy Samy El-Shabasy, Associate Professor, Helwan University.

(1) WHAT IS Accounting?

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(1) WHAT IS Accounting?
At the beginning, Accounting is a science and
an Art,
It has gone through many changes that affected it, So, the
definition of accounting can be summarized in three
definitions that represent the stages of its development:
1- Accounting is the recording, classification,
summarization, and tabulation of financial operations to
provide information that serves users.
2- Accounting is the recognition, measurement, and
disclosure of financial operations to provide information to
Make decision.
3- Accounting is an information system that depends on the
measurement and processing of financial operations to
provide appropriate and relevant information that helps the
decision maker to rationalize his decisions.

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(2) WHAT ARE Objectives of Financial
Accounting?

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(2) WHAT ARE Objectives of Financial
Accounting?

Financial accounting aims to achieve many objectives, the

most important of which are:

1- Determine and measure the result of the activity, whether

Profit or Loss.

2- Determine and measure and present the company’s

assets, liabilities, and changes thereto, and determine the
company’s Financial Position.

3- Providing Relevant financial information to internal

users to assist them in the planning and control process.

4- Providing Relevant financial information to external

users to help them make decisions.

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(3) How is the Application of Systems
Approach on Financial Accounting?

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(3) How is the Application of Systems
Approach on Financial Accounting?

Application of Systems Approach on Financial

Accounting

Financial Accounting System

Figure (1)

Inputs processes Outputs

Data Accounting Cycle Information

- Recording in Journal Entry. Financial

Based on the documentary
cycle (invoices, receipts,
promissory notes, checks,
promissory notes, and
others)
Statements &
- Posting to the Ledger. Reports
- Trial Balance Before Adjustments.
- Adjustments.
- Trial Balance After Adjustments.
- Closing Entries.

Feedback
(Correcting Accounting Errors)

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 The accounting equation (Balance equation)

Assets = Liabilities + Owner's Equity

Journal Entry (JE)

No date Description Debit Credit
(DR) (CR)

1 …/../…

2 …/.../..

Ledger (T. Account/G. L) ...……

DR CR
……..

……. ……..

Trial Balance (TB)

Balance
Account
Debit (DR) Credit (CR)
…………………..
…………………..
Total

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(4) What Will We Study in This Course?

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(4) What Will We Study in This Course?

1- Accounting for Merchandising Operations

2- Accounting for Cash and Temporary

Investments

3- Accounting for Receivables

4- Accounting for Inventories

5- Accounting for Non-Current Assets

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