ACCOUNTING

ACCOUNTING
Is the collection, recording, evaluation and
communication of economic events, quantified
in monetary terms.
It can also be defined as the process of
identifying, measuring, and communication of
economic information to permit informed
judgment and decision by the users of
information.

USERS OF ACCOUNTING INFORMATION
1. Customers
2. Creditors
3. Shareholders
4. Employees
5. Management
6. Banks
7. Public Authorities/ Government Agencies

FUNCTIONS OF ACCOUNTING
1. Recording
2. Classifying
3. Summarizing
4. Dealing with financial transactions
5. Analyzing and interpreting
6. Communications

The main PURPOSE of accounting is to collect
and record economic information about an
entity and to report upon its resources and
performance to interested parties.

OBJECTIVES OF ACCOUNTING
1. To provide reliable information about
changes in economic resources and
obligations.
2. To provide information about an
organization’s accounting policies.
3. To satisfy legal regulatory requirements.
4. To provide financial information that helps
in estimating the earnings potential of the
organization.

BOOKKEEPING
This simply means making records of business
transactions.
Characteristics of Useful Accounting
Information
1. Reliable information
2. Complete information
3. Relevant information
4. Understandable information
5. Unbiased information
6. Comparability of information
7. Timeless information

FINANCIAL ACCOUNTING
These is mainly concerned with production of
financial statement for users outside the
business. Is use to record transactions between
the business and it customers, supplies,
employees and owners.

COST ACCOUNTING
According to CIMA, Is the application of
accounting and cost principles methods and
techniques in ascertainment of cost and
analysis of saving and / or excess as compared
with previous experience or with standards.

MANAGEMENT ACCOUNTING
These is concerned with identifying, presenting
and interpreting information used for
formulating of strategy, planning and
controlling the activities, decision making and
optimizing the use of resources.

CAREERS IN ACCOUNTING
1. Auditors
2. Project manager
3. Financial analyst
4. Financial accountants
5. Investment advisor
6. Cost and Management accountants
7. Tax advisor etc

LIMITATIONS OF FINANCIAL STATEMENT
1. It does not provide detailed analysis.
2. It does ignore vital information that lacks
financial character
3. It does not disclose the present value of the
business.
4. It permit alternative treatment which
sometimes make comparison difficult.

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