FC UNIT 2. Book Keeping Meaning Definition –Objectives Accounting Meaning –Definition Objectives Types of Accounts Financial Accounting Cost Accounting Management Accounting its features and Difference.

Book Keeping Meaning Definition –Objectives Accounting Meaning –Definition Objectives Types of Accounts Financial Accounting Cost Accounting Management Accounting its features and Difference.

1. FUNDAMENTALS OF COMMERCE UNIT – II Book-Keeping and Accounting Dr.N. Muthuselvi .,M.Com.,MBA.,M.Phil.,Ph.D., B.Ed ., Assistant Professor, Department of Commerce, Mangayarkarasi College of Arts and Science for Women

2. Book-Keeping Meaning: The process of recording financial transactions systematically and in order. Definition: Book-keeping is defined as the recording of financial transactions and events in an orderly manner.

3. Objectives of Book-Keeping Accurate and complete record of all financial transactions. - Facilitates the preparation of financial statements. - Helps in maintaining permanent records for future reference. - Assists in controlling finances and planning

4. Accounting - Meaning and Definition Meaning: The process of recording, classifying, summarizing, and interpreting financial information. Definition: Accounting is the systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting, and communicating financial information.

5. Objectives of Accounting - To provide financial information to stakeholders. - To ascertain the financial position of the business. - To facilitate decision-making. - To comply with legal requirements. - To aid in planning and controlling business activities.

6. Types of Accounts Personal Accounts: Deals with individuals, firms, and companies. Real Accounts: Deals with assets. Nominal Accounts: Deals with expenses, losses, incomes, and gains.

7. Financial Accounting Meaning: Focuses on preparing financial statements for external users. Features: - Records financial transactions and summarizes them in financial statements - Adheres to Generally Accepted Accounting Principles (GAAP) - Used by external stakeholders

8. Cost Accounting Meaning: Focuses on recording, classifying, and analyzing costs associated with production. Features: - Helps in cost control and cost reduction. - Provides detailed cost information to management. - Used internally by management for decision-making.

9. Management Accounting Meaning: Involves preparing management reports and accounts that provide accurate financial and statistical information to managers. Features: - Focuses on internal reporting - Helps in strategic planning, budgeting, and performance evaluation - Not regulated by GAAP or other external standards

10. Differences Between Financial, Cost, and Management Accounting