Financial Accounting Lecture 01 Introduction

Course Policy Policy for the distribution of marks and examination is as follows: Class performance & attendance 10 marks Presentation 05 marks Assignment 05 marks Midterms 30 marks Final 50 marks

Language of Business…… Accounting Language of Business…… The business Manager cashier and salesmen use the term accounting to explain the business events. The business Manager cashier and salesmen use the term accounting to explain the business events.

Accounting is the brain of business…. Without proper accounting all information and data provided will be incorrect.

Accounting Definition Accounting is art of recording , classifying and summarizing in significant manner in terms of money, transaction and events which are in part at least of a financial character and interpreting the results thereof.

Why financial accounting needed? The need for recording financial transactions arises because the individual or business wants to know the performance and to assist the person in making decisions related to the business.

Eyes and ears for Management…….. Accounting Eyes and ears for Management……..

Business Business is an activity undertaken with the objective of earning profit. Servicing Trading Producing or Manufacturing

Classification Of Business Organizations Sole ownership Partnership Corporation

Any exchange of value is called Transaction Any exchange of value is called Transaction…..

Classification of transactions Barter Transaction Cash Transaction Credit transactions