Presentation on

Financial Accounting
TOPIC: ACCOUNTING
. D O N E BY: E VA N G ELY N E , K O K O ,
R I PA N C H I , AT RI S ,
SH A N L A N G & D A RY L
 CONTENT

1. What is accounting?
2. Classification of accounting
3. Is accounting an art or science?
4. Reference
 What is
Accounting?

- Accounting is the recording of financial transactions along with storing, sorting, retrieving, summarizing, and
presenting the results in various reports and analyses. Accounting is also a field of study and profession
dedicated to carrying out those tasks
Accounting allows business to examine their results regarding profits, losses, sales, trends, etc
It is handled by a bookkeeper or an accountant
 Classification of
Accounting

There are three different classes of accounting which are Financial Accounting, Cost Accounting, and
Management Accounting.
1. Financial Accounting: It is a process of recording, summarizing, and reporting various transactions that occur
over a period of time during the course of business.
 All transactions are converted into financial statements, balance sheets, income statements and cash flow
statements
Accrual Basis

Methodology

Cash Basis
 Classification of
Accounting

1. Cost Accounting : it is a process of recording, summarizing, analyzing, and allocating the cost over the process of
manufacturing a product or providing service
 It helps management to determine the cost involved in manufacturing a product or services
- Elements for cost accounting are:
a. Materials
b. Labor
c. Other expenses
 Classification of
Accounting

1. Management Accounting: Management Accounting or Managerial Accounting helps managers to

make and implement business policies for better results. They use financial accounting information for
this purpose.
Management accounting is a different analysis tool for analyzing accounting information and to
draw out best for the organization.

Based on Financial Accounting

Segregation of the Tools

Based on Cost Accounting
 Is Accounting an Art
or a Science?
Accounting as a Science: Accounting as an Art
Accounting is the science of recording and presenting the financial data Accounting can be considered an art because it requires creative
of an economic entity by observing, detecting, investigating,and judgment and skills. In order to perform accounting functions well,
identifying the economic events via established collecting, testing, discipline and training is required.
analyzing and presenting methods
Considered an art because it presents the financial and implementing a
It’s a science because it follows a systematic and organized path to universally accepted method
understanding an economy
Art is the study of implying scientific method to practical use. And
Considered a science because it comprises of rules, principles, Accounting is an art as the established rules and principle of
concepts, etc accounting is applied in the bookkeeping process of an economic entity.
 REFERENCE

1. https://bench.co/blog/accounting/what-is-accounting/
2. https://marketbusinessnews.com/financial-glossary/accounting-definition-meaning/
3. https://www.toppr.com/guides/fundamentals-of-accounting/accounting-process/classificatio
n-of-accounting/#:~:text=There%20are%20three%20different%20classes,Cost%20Accountin
g%2C%20and%20Management%20Accounting
.
4. https://www.iedunote.com/how-accounting-art-science
5. https://www.careerexplorer.com/careers/questions/5/is-accounting-an-art-or-a-science/