DEFINITIONS OF ACCOUNTING by RJ's Recreations.pptx

Basic Accounting

1. DEFINITIONS OF ACCOUNTING

2. DEFINITIONS OF ACCOUNTING A ccounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities, that is intended to be useful in making economic decisions. ( According to the Accounting Standards Council) Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events that are, in part at least, of financial character and interpreting the results thereof . ( According to American Institute of Certified Accountants, 1941) Accounting is the process of identifying, measuring, recording and communicating the required information relating to the economic events of an organization to the interested users of such information. (https://www.ncert.nic.in/ncerts/l/keac101.pdf)

3. KEYWORDS FROM THE DEFINITION OF ACCOUNTING A ccounting is a service activity . Its function is to provide quantitative information , primarily financial in nature , about economic entities , that is intended to be useful in making economic decisions . ( According to the Accounting Standards Council) Accounting is the art of recording , classifying and summarizing in a significant manner and in terms of money , transactions and events that are, in part at least, of financial character and interpreting the results thereof . ( According to American Institute of Certified Accountants, 1941) Accounting is the process of identifying , measuring , recording and communicating the required information relating to the economic events of an organization to the interested users of such information. (https://www.ncert.nic.in/ncerts/l/keac101.pdf)

4. KEYWORDS FROM THE DEFINITION OF ACCOUNTING RECORDING SUMMARIZING CLASSIFYING IDENTIFYING MEASURING REPORTING The process of determining whether this/these transaction(s) be accounted or be recorded in the business books of accounts or not? Refers to determining the value of transactions in order to record them properly on financial reports. Of the transacted amount, should it be recognized in partial or in full? Basically, the currency that is being used by the business must be known so that the true value of the financial report will be much appreciated. The booking of financial transactions that are related in business, by entering data in journals, ledgers, or any other book of accounts in a chronological manner. The stage in accounting wherein separating accounts into different categories like assets , liabilities, capital/equity, incomes and expenses. The process of presenting the final value of each account in a separate statement, called “Trial Balance ”. Refers to the presentation of financial reports or financial statements of the business to the management and other interested parties at certain period of time.