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THE FIELD OF ACCOUNTING - Coggle Diagram
THE FIELD OF ACCOUNTING
Accounting
Accounting is the process of identifying, measuring, interpreting financial activity
private accounting
governmental accounting
public accounting
Purpose
The underlying purpose of accounting is to provide financial information about an economic entity
Users of Accounting Information
external users
include: owners, lenders, suppliers, potential investors and creditors, employees, taxing authorities
internal users
include all levels management personnel within an entity who are responsible for the planning and control of operations
Steps of accounting system
recording
classifying
summarizing
branches of accounting
financial accounting
managerial 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