Financial Accounting and Reporting

Prepared By:
Dr. H. M. Mosarof Hossain
Professor
Department of Finance
University of Dhaka
mosarof@du.ac.bd

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 Chapter 1 : Accounting in Business
Organizations and Society
Business organization:
i. Corporation
ii. Sole proprietorship
iii. Partnership

Common activities in business, government and

nonprofit organizations:
i. Finance
ii. Human resources
iii. Research and development
iv. Production
v. Marketing
vi. Executive management

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Accounting and its role in organizations

i. Accounting provides important information to people for

making rational investment, credit and other decisions.

ii. It provides relevant information to investors, lenders,

managers, suppliers, customers and employees.

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Using accounting to serve internal needs

i. Finance – cash flow information

ii. Human resources – payroll information
iii. Research and development – cost report
iv. Production – production reports and internal
controls
v. Marketing – sales reports and costs reports
vi. Executive management – financial statements,
budgets and performance reports

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 Using accounting to serve external needs

i. Owners – company’s performance and financial

strength
ii. Lenders/creditors – financial strength and profit
position
iii. Voters, legislators and officials – receipts and
expenditures (in case of govt.)

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 Why study accounting?

i. Accounting as a future career

ii. It avoids misunderstaing and misniterpretation of
information

Difference between bookkeeping and accounting:

Accountig and computers:

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 Types of accounting and accountants

Accounting:
i. Financial accounting
ii. Managerial accounting
iii. Cost accounting
iv. Tax accounting

Accountants:
I . Private accountants
ii. Public accounts
iii. Government accountants

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The importance of ethics in accounting

The meaning of ethics:

Ethics in business:
Ethics in accounting: