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