Professional Documents
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ACCOUNTING : The Basis for Business Decisions
Lecture - 1
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WHAT IS ACCOUNTING?
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WHAT IS ACCOUNTING?
A means to an end.
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Concepts Underlying Accounting
Measurement
Accounting is an information system that measures,
processes, and communicates financial information about
a business or other economic entity.
Financial Accounting
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Types of Accounting
Management Accounting
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Types of Accounting
Tax Accounting
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Financial and Managerial Accounting
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Importance of Financial Accounting
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Importance of Financial Accounting
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Importance of Management Accounting
The Primary objectives of Management Accounting
information are :
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Importance of Management Accounting
The Primary objectives of Management Accounting
information are :
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Importance of Management Accounting
The Primary objectives of Management Accounting
information are :
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Importance of Management Accounting
The Primary objectives of Management Accounting
information are :
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ACCOUNTING SYSTEM :
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Economic Activities
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Functions of Accounting System
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Functions of Accounting System
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Functions of Accounting System
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Financial Reporting and Financial Statements
Internal Information:
1.Balanced Sheet
2. Income Statement
3. Statement of Cash flows
Other Information:
• Industry
• Competitors
• Economy-wide
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Objectives of External Financial Reporting
Balance Sheet
Income Statement
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Decision Makers: The Users of
Accounting Information
•Owners
•Labor unions
•Governmental agencies
•Suppliers
•Customers
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External Users of Accounting Information
•Investors
•Creditors
•Government Agencies
(SECP, SBP, IRS, EPA,
Ministries etc.)
•Researchers
•Trade associations
•General public
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External Users of Accounting Information
•Labor Unions
•Suppliers
•Customers
•Trade Associations
•General Public
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Users of Internal Accounting Information
Board of Directors
Vice Presidents
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Users of Internal Accounting Information
Plant managers
Store Managers
Line Supervisors
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Objectives of Management Accounting
Information
To
To help
help achieve
achievegoals
goalsand
and
missions
missions
To
Tohelp
helpevaluate
evaluateand
andreward
reward
decision
decision makers
makers
Integrity of Accounting Information
Institutional Features
Generally Accepted Accounting Principles (GAAP)
Legislation
GAAP and the Independent CPA’s Report
Professional Organizations
American Institute of Certified Public
Accountants
Institute of Management Accountants
CP
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Integrity of Accounting Information
Careers in Accounting
Public Accounting
Management Accounting
Governmental Accounting
Accounting Education
SUMMARY
Accounting is the means by which information
about an enterprise is communicated and is
called the language of business.
Many internal and external users have need for
accounting information in order to make
important decisions.
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SUMMARY
Because the primary role of accounting
information is to provide useful information for
decision making purposes, it is referred to as a
means to an end.
With the end being the decision that is helped by
the availability of accounting information.
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