Accounting Concepts 1. Accounting or Business Entity  Business is separate and distinct from its owners Example – your personal bank account vs. that.

Slides:

Advertisements

Similar presentations

FUNDAMENTALS OF ACCOUNTING Dr. Rana Singh www. ranasingh

Advertisements

Accounting Methods for Measuring Performance

GAAP’s Are a set of rules or standards followed by accountants Some are formal and some are simply “accepted practice”. The Canadian Institute of Chartered.

Accounting: The Universal Language of Business

Chapter 2 Balance Sheet September 16 class Note: Unit 1 Test (covering chapter 1, 2 and 3) will be Tuesday September 23.

CONCEPTUAL FRAMEWORK OF ACCOUNTING Samir K Mahajan.

© PHI Learning, All rights reserved.1 Financial Accounting: A Managerial Perspective Third Edition Prepared by R. Narayanaswamy Indian Institute.

CHAPTER 1: Accounting in Action

Chapter 1 – Starting a Proprietorship

Section 2Accounting: The Universal Language of Business What You’ll Learn  How the accounting system works.  Who uses financial accounting reports. 

Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1999 Understanding Financial Statements © The McGraw-Hill Companies, Inc., Part One: Financial.

After studying this chapter, you will be able to : 1- List the elements of structure of accounting theory. 2- Define “accounting postulates” and explain.

ACCOUNTING TRANSACTION CYCLE

Unit Branches of Accounting There are three branches of Accounting. i) Financial accounting; ii) Cost accounting; iii) Management accounting. Question.1.

Introduction to Accounting. SO 1 Explain what accounting is. Purpose of accounting is to: 1.identify, record, and communicate the economic events of.

Chapter 2 Accounting Principles Learning Objectives After studying this chapter, you should be able to: Students are able to understand the accounting.

ACCOUNTING PRINCIPLES. Accounting principles can be subdivided into two categories:  Accounting Concepts; and  Accounting Conventions.

Balance sheet. Balance Sheet of X Ltd. as on 31 st March, 2011 Equity and Liabilities Amount in Rs. AssetsAmount in Rs. Shareholders’ equity 5,00,000Fixed.

Principles of Accounting Chapter 1 The Balance Sheet.

Chapter 1-1 CHAPTER 1 ACCOUNTING IN ACTION Accounting Principles, Eighth Edition.

ACCOUNTING IN ACTION Unit 1 1 Gerald Trenholm 7 MacCauly Drive Fredericton NB Identification Select economic events (transactions ) Recording Record,

Financial Statements and Accounting Transactions More of C H A P T E R

Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.Glencoe Accounting The Environment of Business.

Gerald Trenholm 7 MacCauly Drive Fredericton NB Identification Select economic events (transactions ) Recording Record, classify, and summarize Account.

Business English Reading 实用商务英语导读教案.

Concepts of accounting. When an accountant prepares the accounts for a business, there are a number of key accounting concepts that he or she must apply.

1-1 Prepared by Coby Harmon University of California, Santa Barbara Westmont College.

Claims Against the Assets. Balance Sheets show us what the company owns, and what it owes. But who has the rights to the assets? Remember, assets are.

Accounting Concepts Accountancy T. S. Grewal's Double Entry Book Keeping Presentation By : Vinod Kumar (PGT Commerce) The Lawrence School Sanawar .

Accounting Jeopardy Glencoe Accounting Chapters 2-3 By Carl Lyman © December 2001.

Chapter 1 The Basics of Accounting. What is Accounting? Accounting Plan, record, analyze, interpret Accounting System Process of providing the information.

Got it: Vocabulary Three Principles of Accounting Who uses financial accounting verses management accounting reports. What assumptions provide the foundation.

Accounting Concepts Underlying Assumptions, Principles, and Conventions Financial accounting relies on several underlying concepts that have a significant.

FINANCIAL STATEMENTS BALANCE SHEET.

GAAP PowerPoint #3. Understandability Decision Usefulness Relevance Predictive Value Feedback Value Timeliness Reliability Verifiability Neutrality Representational.

GENERALLYACCEPTED ACCOUNTING PRINCIPLES GAAP. 1. ENTITY CONCEPT An accounting entity is an organisation that stands apart from other organisations or.

Copyright  2006 Pearson Education Canada Inc. 2-1.

ACCOUNTING PRINCIPLES  General guidelines for preparing accounting statements.  Accepted by accountants all over the world.

As a Small Business Owner, you must be aware of the Rules of the Accounting  GAAP  FASB  SEC and IRS  AICPA u The rules u The rule makers u The rule.

Accounting Jeopardy Glencoe Accounting Chapters 1.

Section 2Accounting: The Universal Language of Business What You’ll Learn  How the accounting system works.  Who uses financial accounting reports. 

What Is Accounting? BAF3M – Mr. Meechem. Case Study Read the case study handout Discuss with you table Answer: –What action should Amanda take to ensure.

STRUCTURE OF ACCOUNTING THEORY. ACCOUNTING THEORY -“A systematic statement of the rules or principles which underlie or govern a set of phenomena.” -“A.

1 Chapter 1 Accounting as a Form of Communication Financial Accounting 4e by Porter and Norton.

(GAAPs).  Accountants follow a set of rules or standards known as generally accepted accounting principles (GAAPs)  GAAPs include a number of specific.

Chapter 1 Accounting in Action. How Will Accounting Help Me? Used in Any Profession Used as a Career Choice Used for Personal Investments and Financial.

a- Accounting: is the art of recording, classifying, reporting, and interpreting the financial data of an organization. b- Accounting: is a social.

US GAAP Generally Accepted Accounting Principles, US GAAP or simply GAAP are terms for the generally accepted accounting principles and rules used in the.

INTRODUCTION TO ACCOUNTING PANOS PAPADOPOULOS. WHAT IS ACCOUNTING? Accounting is the recording of financial transactions plus storing, sorting, retrieving,

Accounting Jeopardy Glencoe Accounting Chapters 2-3 By Carl Lyman © December 2001.

Financial and Managerial Accounting Wild, Shaw, and Chiappetta Fourth Edition Wild, Shaw, and Chiappetta Fourth Edition McGraw-Hill/Irwin Copyright © 2011.

ACCOUNTING FOR MANAGERS. MODULE:1 THE FOUNDATION.

ALP101-G ACCOUNTING CONCEPTS, PRINCIPLES AND PROCEDURES.

Chapter 1 – Starting a Proprietorship n Objectives: –Define accounting terms related to starting a service business organized as a proprietorship –Classify.

Welcome to… Principles of Accounting 1 Text book:Fundamentals Accounting Priciples Wild,Larson, Chiapetta Sumia E. Mohieldin Phone #:

Accounting Principles. GAAP (Generally Accepted Accounting Principles): The rules that govern accounting are called GAAP (Generally Accepted Accounting.

THE BALANCE SHEET Business Transactions Unit 2. Business Transactions  Definition:  A business transaction is an exchange of things of value Something.

Accounting Jeopardy Unit 1

The Financial Statements

Concepts of Accounting

sundar Shrestha Deputy Director Of Studies NAsc

Financial Accounting Fundamentals

FINANCIAL ACCOUNTING AND ANALYSIS. ACCOUNTING It is a systematic process of Identifying Recording Measuring Classifying Verifying Summarizing Interpreting.

Financial Accounting Prof. B.D.Panda.

UNIT – I Accounting Concepts

Accounting Concepts, principles & policies

Accounting Concepts An overview Nov. 11, 2012.

BASIC ACCOUNTING CONCEPTS

Introduction to Accounting

Takshila Learning Learn anything anywhere www. takshilalearning

Presentation transcript:

Accounting Concepts 1

Accounting or Business Entity  Business is separate and distinct from its owners Example – your personal bank account vs. that of your company 2

Going Concern Business is a continuing enterprise and will exist for an indefinite period 3

Money Measurement  Transactions which can be expressed in monetary terms are only recorded.  Money is a stable measurement unit 4

Accounting Period a business’ lifetime can be divided into different time periods for reporting Most common time period is 1 year 5

Dual Aspect Every business transaction has two aspects. E.g. : A starts business starts business with capital of Rs10,00,000. There are 2 aspects of this transaction, on one hand the business has asset of Rs10,00,000 and on the other it has to pay to the proprietor Rs10,00,000 6

7 Generally Accepted Accounting Principles and Accounting Standards  What is GAAP?  Importance of GAAP  Why does accounting practice differ?  Accounting policies  Need for accounting standards  Standard-setting mechanism in India