BBA-302

Financial accounting
CA 2 Assignment
Subject teacher: Sourav Keshari

Name Spandan Dutta

Roll number 34405021009
Topic Financial Accounting
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ACKNOWLEDGEMENT
I would like to express my special thanks
of gratitude to my teacher Mr.Sourav
Keshari, who gave me the golden
opportunity to do this wonderful project
on FINANCIAL ACCOUNTANCY.

I also acknowledge with a deep sense of

reverence, my gratitude towards my
peers and other faculty members for their
valuable guidance.

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Content
Introduction.………………………………………………………… 3

What is accounting?.....................................................4

The users of Accounting Informations………….5-

8

What is
GAAP?.......................................................................9

The difference between bookkeeping and

Accounting……………………………………………………………..10-11

Short note on 5 Accounting concepts and

conventions…………………………………………………………..12-14

Meaning of books of primary entry and books

of secondary entry………………………………………………15

Is it necessary to prepare Trial-Balance?.........16

Steve jobs commencement speech at

Stanford University……………………………………………17-24

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Bibliography…………………………………………………………25-
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●Introduction
Financial accounting is a specialized
branch of accounting that keeps track of
a company's financial transactions. Using
standardized guidelines, the transactions
are recorded, summarized, and presented
in a financial report or financial statement
such as an income statement or a balance
sheet.

It's important to point out that the

purpose of financial accounting is not to
report the value of a company. Its purpose
is to provide enough information for
others to assess the value of a company
for themselves, financial statements tend
to be widely circulated, and information

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will likely reach secondary recipients such

as competitors, customers, employees,
labor organizations, and investment
analysts.

● What is accounting?

Accounting is the processor keeping

the accounting books of the financial
transactions of the company. The
accountants summarize the
transactions in the form of journal
entries. These entries are used in
bookkeeping. The books of accounts
are prepared by the accountants as
per the regulation of the auditors and
various regulating bodies. The
accountants might follow the
Generally Accepted Accounting
Principles (GAAP) or the IFRS

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(International Financial Reporting

Standards) principles.

●Users of Accounting Information

The accounting process provides

financial data for a broad range of
individuals whose objectives in
studying the data vary widely. There
are three primary users of accounting
information: internal users, external
users, and the government (which is a
specific form of an external user). Each
group uses accounting information
differently and requires the
information to be presented
differently.

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●Internal Users
Two people sitting at a table in front
of a laptop. One person is a white man,
who is gesturing at the computer. The
other is an asian woman looking at the
computer.Internal users are owners
and managers involved in the day-to-
day operations of the business and in
long-term strategic planning. They are
the ones who are making decisions
such as whether to lease or buy
equipment or to keep the old
equipment and simply keep repairing
it. They also decide what products or
services to produce and how much of
each to supply. They decide on the
price to charge to customers, and they

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want to know how much it costs to

make a product.

●External Users
The external users of accounting
information fall into five groups; each
has different interests in the company
and wants answers to unique
questions. The groups and some of
their possible questions are:

● Prospective and current board

members or investors. Has the
company earned satisfactory
income on its total investment?
Should an investment be made in
this company? Should the present
investment be increased,
decreased, or retained at the same
level?

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● Creditors and lenders. Should a

loan be granted to the company?
Will the company be able to pay its
debts as they become due?

● Employees and their unions. Does

the company have the ability to pay
increased wages? Is the company
financially able to provide long-
term employment for its
workforce?

● Customers. Does the company

offer useful products at fair prices?
Will the company survive long
enough to honor its product
warranties?

● General public. Is the company

providing useful products and
gainful employment for citizens

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without causing serious

environmental problems.
● What is GAAP ?
GAAP is short for Generally Accepted
Accounting Principles. GAAP is a
cluster of accounting standards and
common industry usage that have
been developed over many years. It is
used by organizations to properly
organize their financial information
into accounting records, summarize
the accounting records into financial
statements, and disclose certain
supporting information.

One of the reasons for using GAAP is

so that anyone reading the financial
statements of multiple companies has
a reasonable basis for comparison,
since all companies using GAAP have

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created their financial statements

using the same set of rules.

●What is the difference between

bookkeeping and Accounting ?

Bookkeeping Accounting
Record and Prepare adjusting
categorize daily entries.
payments and
expenses
Analyze the cost
of operations.
Send customer
invoices and
record payments
Advise business
received
owner during

Conduct bank financial decision

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reconciliations making
every month

Review and
Generate monthly analyze financial
financial statements
statements

Assess financial
Process payroll
health and make
financial forecasts
Prepare the books
Perform audits
for the accountant

File tax returns,

Provide year-end conduct tax
financials and tax planning, and
documents to the provide tax
accountant advisory External
Users

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● Write a short note on at least 5

Accounting concepts and conventions.

Money Measurement Concept

Money Measurement concept
states that only those transactions
are recorded and measured in
monetary terms. In simple words,
only financial transactions are
recorded in books of accounts.

Periodicity Concept
The periodicity concept states that
the entity or the business needs to
carry out the accounting for a
definite period, usually the financial
year. The period for drawing
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financial statements can vary from

monthly to quarterly to annually. It
helps in identifying any changes
occurring over different periods.

Accrual Concept
According to Accrual Accounting
, the transaction is recorded on a
mercantile basis. In other words,
transactions are to be recorded as
and when they occur, not as and
when the cash is received or paid,
and for the period the transaction
pertains.

Cost Concept
The cost concept states that any
asset that the entity records shall

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be recorded at historical cost value,

i.e., the asset’s acquisition cost.

Entity Concept

The entity concept is a concept that

explains to you that your business is
different from yours. It tells you that
the business owner and the owner are
two separate entities. The statute
recognizes the entity as an artificial
person. The entity must prepare its
own set of financial statements and
record its business transactions
accordingly.

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●What do you mean by books of

primary entry and books of secondary
entry?

● Books of primary entry A journal is

known as primary book. Books of
Prime Entry are a more efficient
variation on double-entry
accounting. In basic double entry,
a double entry is made in the
general journal, which is posted in
the general ledger accounts.

● Books of secondary entry It is called a

secondary book because it is
prepared after the journal and on
the former's basis. Hence it is
subsidiary to the journal. A ledger
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is also known as a book of

secondary entry.

●Is it necessary to prepare

Trial-Balance?

The purpose of a trial balance is to

ensure that all entries made into an
organization's general ledger are
properly balanced. A trial balance
lists the ending balance in each
general ledger account. The total
dollar amount of the debits and
credits in each accounting entry are
supposed to match.

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● Summary: Steve Jobs

commencement speech at
Stanford University
In this story, he told that he was
putted on adoption, because his
biological mother felt like the
right thing was that his baby had
graduated for college.Then he

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dropped out college because he

didn't know what to do with his
life,and didn't see how college
would help. Then he talked
about something he calls
"connecting the dots", that is
basically "you do things for a
reason.What you do now, it will
help you in the future, as long as
you follow your heart. Next he
talks about Love and loss.
Success, what it takes to become
successful.Here, he tells the
story of, somehow, when he got
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fired from his own company, he

felt free and insecure, and how
that helped him to create things
like, Pixar and NeXT, and met
with his wife, following his
heart.Then he talks about
Death and his battle with
pancreatic cancer.Remembering
that I'll be dead soon is the most
important tool I've ever
encountered to help me make
the big choices in life. Because
almost everything — all external
expectations, all pride, all fear of
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embarrassment or failure - these

things just fall away in the face
of death, leaving only what is
truly important. Remembering
that you are going to die is the
best way I know to avoid the
trap of thinking you have
something to lose. You are
already naked.There is no
reason not tofollowyour heart.
When he was diagnosed with
cancer, the doctors said that he
needed to prepare to die
basically, but then he had a
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surgery. No one wants to die.

Even people who want to go to
heaven don't want to die to get
there. And yet death is the
destination we all share. No one
has ever escaped it. And that is
as it should be.Why is it
important to love what you do?
Because it is the only way you
are going to be pleased with
yourself, as people say, "if you
love your job, you'll never have
to work".Your time is limited,
so don't waste it living someone
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else's life. Don't be trapped by

dogma — which is living with
the results of other people's
thinking. Don't let the noise of
others' opinions drown out
your own inner voice. And
most important, have the
courage to follow your heart
and intuition. They somehow
already know what you truly
want to become. Everything else
is secondary.

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When I was young, there was an

amazing publication called The
Whole Earth Catalog, which
was one of the bibles of my
generation. Stewart and his
team put out several issues of
The Whole Earth Catalog, and
then when it had run its course,
they put out a final issue. It was
the mid-1970s, and I was your
age. On the back cover of their
final issue was a photograph of
an early morning country road,
the kind you might find yourself
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hitchhiking on if you were so

adventurous. Beneath it were
the words: "Stay Hungry. Stay
Foolish." It was their farewell
message as they signed off. Stay
Hungry. Stay Foolish. And I
have always wished that for
myself. And now, as you
graduate to begin anew, I wish
that for you.

Stay Hungry. Stay Foolish.

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● Bibliography

1. https://
www.accountingtools.com/
articles/what-is-the-purpose-of-a-
trial-balance.html#:~:text=The
%20purpose%20of%20a%20trial
%20balance%20is%20to%20ensure
%20that,entry%20are%20supposed
%20to%20match.

2. https://
m.economictimes.com/
definition/accounting/amp

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3. https://
www.accountingtools.com/
articles/what-is-gaap.html

4. https://
www.wallstreetmojo.com/
accounting-convention/

5. https://blog.kippa.africa/
bookkeeping-vs-accounting/amp/

6. https://www.academia.edu/
14034807/
Steve_Jobs_University_of_Stanfor
d_Speech?source=swp_share

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