THE FIELD OF ACCOUNTING
Accounting
Accounting is the process of identifying, measuring, interpreting financial activity
Purpose
Users of Accounting Information
Steps of accounting system
The underlying purpose of accounting is to provide financial information about an economic entity
recording
classifying
summarizing
external users
internal users
include: owners, lenders, suppliers, potential investors and creditors, employees, taxing authorities
include all levels management personnel within an entity who are responsible for the planning and control of operations
branches of accounting
financial accounting
managerial accounting
private accounting
governmental accounting
public accounting
ACCOUNTING CONCEPTS
Realisation of Revenue
Matching Expenses with Revenue
Historical Cost
Adequate Disclosure
Consistent Reporting
Prudence
Materiality
Unit of Measurement
Objective Evidence
Accounting Period Cycle
Going Concern
Business Entity