Lesson 1 Flashcards
(34 cards)
is a process** of identifying, recording and communicating economic information** that is useful in making economic decisions.
Accounting
the accountant analyzes each business transaction and identifies whether the transaction is an “accountable event” or “non-accountable event.”
Essential elements of the definition of accounting
Identifying
The accountant** recognizes (i.e., records) the “accountable events”he has identified. This process is called
Essential elements of the definition of accounting
Recording and journalizing
After journalizing, the accountant then classifies the effects of the event on the “accounts.” This process is called
Essential elements of the definition of accounting
posting
After journalizing, the accountant then classifies the effects of the event on the “accounts.” This process is called
Essential elements of the definition of accounting
Posting
at the end of each accounting period, the accountant summarizes the information processed in the accounting system in order to produce meaningful reports.
Essential elements of the definition of accounting
Communicating
Accounting information is communicated to interested users through accounting reports, the most common form of which is the
Essential elements of the definition of accounting
financial statements.
Types of information provided by accounting:
- Quantitative information
- Qualitative information
- Financial information
Nature of accounting
providing information about economic activities intended to be useful in making economic decisions.
to provide ——- information that is useful in making investment and credit decisions;
Functions of Accounting in Business:
external users
To provide ——- with information that is useful in managing the business.
Functions of Accounting in Business:
internal users
Double entry records first came out during?
Brief history of accounting
340 A.D. in Genoa.
Archaeologists have found clay tokens as old as?
8500 B.C.
In 1494,the first systematic record keeping dealing with the?
“double entry recording system”
who formulated the “ “double entry recording system”?
Fra Luca Pacioli
Fra Luca Pacioli is a?
Franciscan monk and mathematician
Fra Luca Pacioli is considered as the?
father of modern accounting.
Branch of accounting:
- Financial Accounting
- Management accounting
- Goverment accounting
- Auditing
- Tax accounting
- Cost accounting
- Accoungting Education
- Accounting Research
Preparation of general purpose Financual statments (FS) what branch of accounting comes from?
Type of accounting service provided
Financial Accounting
Preparation of specifically tailored management reports,what branch of accounting comes from?
Type of accounting service provided
Mangement accounting
General record-keeping and preparation of financial reports for the goverment and it’s agencies ,what branch of accounting comes from?
Type of accounting service provided
Goverment accounting
Expression of an opinion on the correspondence between management assertions and established? what branch of accounting comes from?
Type of accounting service provided
Auditing
preparation of tax returns and providing tax advice, What branch of accounting comes from?
Type of accounting service provided
Tax accounting
Analysis of cost of product or services, What branch of accounting comes from?
Type of accounting service provided
Cost accouting
