Induction to Basic Accounting and fin.pptx

accounting

1. Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the results thereof. “ ” American Institute of Certified Public Accountants (AICPA)

2. BASIC TERMS OF ACCOUNTING Sample text here (16) 2

3. Need For Accounting ! We need accounting because it is the backbone of business finances . It was created in response to the development of trade in medieval times. The first recorded source of accounting entries was in Italy in 1494 by Luca Pacioli, a Franciscan monk. It is simply not for providing information to tax authorities and government agencies but to identify and record all the activities that impact an organization in a financial manner. It is also useful for the employees and customers in order to know the condition of the business entity.