Basic Terms of Accounting
Basic Terms of Accounting
Basic Terms of Accounting
Basic terms of Accountancy
What is Accountancy?
Accountancy is the profession which deals with Accounting
What is accounting?
Accounting is the language of business
Definition of Accounting:
According to American Institute of Certified Public Accountants (AICPA)
Accounting is the art of
Recording
Classifying and
Summarizing
In a significant manner and in terms of money
Transactions and Events
In part at least, of a financial character,
And interpreting the result thereof
According to American Accounting Association (Widely Accepted Definition
The process of identifying, measuring and communicating economic
information to permit informed judgements and decisions by the users of
accounts.
What is the BookKeeping? Whether Accounting and Book
Keeping are one and
the same?
BookKeeping is the science and art of correctly recording in the books of
account all those business transactions that result in the transfer of money
or
money’s worth.
Accounting and bookkeeping are not one and the same. Accounting is a
wider
term. Accounting includes BookKeeping.
BookKeeping Accounting
It is a process concerned with recording of
transactions
It is a process concerned with summarizing of
the recorded transactions
Managerial Decisions cannot be taken Managerial Decisions can be taken
There are no subfields It have branches or subfields like financial
accounting, management accounting, cost
accounting etc.
Financial Position cannot be ascertained Financial Position can be
ascertained