Professional Documents
Culture Documents
TO
FINANCIAL
ACCOUNTING
HISTORY AND ORIGIN OF
ACCOUNTING
•Recording
•Classifying
•Summarizing
PROFITABILITY
ASCERTAINMENT
GENERATE FINANCIAL
INFORMATION ACCOUNTING POSITION
FORECASTING
•Profitability Ascertainment: Shows true figures of profits earned my
the business or losses incurred by the business enterprise, as the case may be.
Systematic record of
business transactions.
Communication of
results and compliance
of legal requirements
USERS OF ACCOUNTING INFORMATION
BRANCHES OF ACCOUNTING
FINANCIAL ACCOUNTING
COST ACCOUNTING
MANAGEMENT ACCOUNTING
SYSTEM OF ACCOUNTING
When each financial transaction is closely analyzed, it reveals two aspects. One
aspect will be “receiving aspect” or “incoming aspect” or “expenses/loss
aspect”. This is termed as the “Debit aspect”. The other aspect will be “giving
aspect” or “outgoing aspect” or “income/gain aspect”. This is termed as the
“Credit aspect”
the basic principle of this system is, for every debit, there must be
a corresponding credit of equal amount and for every credit, there
must be a corresponding debit of equal amount.
ADVANTAGES OF ACCOUNTING
•ACCOUNTING REPLACES HUMAN MEMORY
Accounting & Sociology : Study of human wants and needs through true
accounting concepts, finding out benchmarks like purchasing worth of a
rupee , human development index, etc.
Accounting with Law & Management: Maintaining proper law, order , and
management, through and fair accounting of each necessary item whether
human or financial.
What Does Cash Basis Mean?
A major accounting method that recognizes revenues and
expenses at the time physical cash is actually received or
paid out.
• Auditor’s Report.
Corporate governance is a term that refers broadly to the
rules, processes, or laws by which businesses are operated,
regulated, and controlled. The term can refer to internal
factors defined by the officers, stockholders or constitution
of a corporation, as well as to external forces such as
consumer groups, clients, and government regulations.
Thank you
Vandana Jain
Assistant professor in Commerce & BBA
Gccba- 42 , Chandigarh.
vandanajain.mvmj.13@gmail.com