Introduction to Financial Accounting.pptx

Introduction to Financial Accounting: Definition of Accounting, Differences between Bookkeeping and Accounting, Users of Accounting Information, Features of good Accounting Information

1. Introduction to FINANCIAL ACCOUNTI NG

2. You are a new student of Accounting ???

3. Accounting T he art of recording, classifying, summarising financial transactions of a business; interpreting the results and communicating it for decision-making. ACCOUNTING

4. Book keeping Bookkeeping Accounting Overall function Accurate up-to-date records of all financial transactions. Information provided is used to determine a company’s financial position. Purpose Maintain a systematic and chronological record of all financial activities and transactions. Analyze and interpret data, make financial forecasts and advise business owners on financial decisions. Result Provide necessary information and data for the accounting process. Prepare and analyze financial statements used to make informed decisions. Key skills Be accurate and knowledgeable about bookkeeping. Understand more complex financial matters and interpret data for business owners. Typical tasks Post journal entries, send invoices, record payments, manage payroll and reconcile accounts. Prepare adjusting entries, analyze costs, perform audits, prepare and file tax returns, provide tax planning and advise business owners. Accounting OR

5. Users of Accounting Information

6. Identify and categorize transactions Record journal entries Post to the general ledger Prepare an unadjusted trial balance Adjust accounting entries Prepare an adjusted trial balance Prepare financial statements Close the books

7. Features of Accounting Information Relevance Reliability Comparability Consistency Understandability Materiality Timely Complete

8. Encoura gement