Accounting is a process of identifying and measuring quantitative financial activities and communicates these financial reports to the decision-makers. Man is a social being. He cannot live in society. Because all individuals have got their limitations, they are to depend on society as a whole for their necessary goods and services. So, the exchange of…
Functions of accounting are related to those statements which provide information of economic entity mainly measurable regarding money that will be used in deciding for the plan of action from various alternatives. Functions of Accounting are; control of financial policy, and formation of planning, preparation of the budget, cost control, evaluation of employees’ performance, Prevention…
Objectives of accounting in any business are; systematically record transactions, sort and analyzing them, prepare financial statements, assessing financial position, and aid in decision making with financial data and information about the business.
Modern accounting is traced to the work of an Italian monk, l.uca Pacioli, whose most famous hooks “The Summa de arithnictica, geometria, proportion! et proportionalita” publication in A.I). 1494 described the double-entry system, which continues to be the fundamental structure for contemporary accounting systems in all types of entities. When double-entry accounting is used, the…
Accounting cycle is a process of a complete sequence of accounting procedures in appropriate order during each accounting period. Accounting process is a combination of a series of activities that begin when a transaction takes place and ends with its inclusion in the financial statements at the end of the accounting period. The sequence of…
![Users of Accounting Information [Internal & External Users]](https://i0.wp.com/www.iedunote.com/img/1545/users-of-accounting-information.png?resize=300%2C200&quality=100&ssl=1 "Users of Accounting Information [Internal & External Users]")
Users of accounting information are internal and external. External users are creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists and internal users are owners, directors, managers, employees of the company.
6 constraints of accounting are; (1) cost-benefit, (2) materiality, (3) consistency, (4) conservatism, (5) timeliness, and (6) industry practice principle.
There are Limitations of accounting in practice and businesses must record, analyze and present accounting information in way to avoid them.
The main difference between bookkeeping and accounting is; bookkeeping is the primary stage of the whole accounting process and accounting is the second or final stage of the whole accounting process. Many people possess erroneous concepts regarding Book-keeping and Accounting. They are neither synonymous nor two different subjects. Bookkeeping and Accounting play separate roles only…
Accounting is art as well as science which systematical process that identifies, records, classifies and communicates the economic facts and figures of an organization. Accounting is both art and science, it follows the scientific path to find, present financial findings in a structured way, its art for giving creative judgment. At some point of learning…
Accounting has a relationship with other disciplines management, economics, mathematics, computer science, statistics, law, political science, and engineering.
To run a business you need data, records, reports, analysis, accurate information about assets, debts, liabilities, profits; and that is why Accounting is Importance for any business activities. The accounting information is very important for the management or the decision making the body of an organization. Management cannot decide without reasonable information for backing it up….
Accounting is called the Language of Business because accounting presents and communicates various information in the form of statements and reports to the interested parties like owners, employees, management, investors, buyers, sellers and more.
The scope of Accounting is wide and extends in business, trade, government, financial institutions, individuals and families and every other arena
Accounting has come to occupy an ever more significant position in the functioning of modem industrial societies. Emerging from the management practices of the estate, the trader, and the embryonic corporation, it has developed into an influential component of modem organizational and social management. At a broader social level, Accounting has become no less influential…