Principles of accounting for BBM SEM 1 NEP

Introduction to accounting

1. Principles of Accounting

2. Accounting is called the Language of Business

3. Accounting Activities Identifying Business Activities Recording Business Activities Communicating Business Activities

4. Introduction Book - Keeping - Book keeping is a process of recording business transitions in the books of accounts in a very systematic manner Accounting - a process of identifying, recording, summarizing, and reporting economic information to decision makers in the form of financial statements

5. What is Accounting? is a system that information that is

6. Definition of Accounting American Institute of Certified Public Accounts (AICPA) has defined accountings as: “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in parts at least of a financial character and interpreting the result thereof“.

7. The Nature of Accounting Accounting systems are designed to meet the needs of the decisions makers who use the financial information. Every business has some sort of accounting system. — These accounting systems may be very complex or very simple, but the real value of any accounting system lies in the information that the system provides.

8. Classifications of Account

9. 2. 4. 11. 12. 13. Kinds of Accounting Princi les Concepts Conventions Disclosure Convention Materiality Convention Consistency Convention Conservation Convention

10. Branches of Accounting Financial Accounting Cost Accounting Management Accounting Journal Ledger Trial balance Final accounts Cost Sheet Job & Contract Process Costing Operating Costing Ratio analysis Break even point Standard Costing Analysis of financial S

11. ACCOUNTING PRINCIPLES Accounting Conventions The term 'convention’ is used to signify customs and traditions as a guide to the presentation of accounting statements.

12. Accounting Concepts and Conventions, Concepts vs Conventions Concepts are the basic ideas, the theories on how and why certain categories of transactions should be treated in a particular manner. Once the theories have been established and tested and proved to be acceptable, the task of the Conventions is to set out the limit of their applications.