The purpose of accounting

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position and cash flows.

1. The Purpose of
Accounting
Mudassir Raza

2. DISCUSSION
POINTS What is Accounting?
The history of accounting.
The objectives of accounting.
What is bookkeeping?
Accounting equation

3. What is Accounting?
The Process of identifying, measuring, and communicating economic information to
permit informed judgements and decisions by users of that infrmation.

4. The History of Accounting
Accounting began because people needed to
- record business transactions and
- know how much they owned and how much they owed

5. The Objectives of
Accounting
Accounting has many objectives, including letting people and organization know
if they are making a proft or a loss
what their business is worth;
what a transaction was worth to them;
how much cash they have;

6. The Objectives of
Accounting
Accounting has many objectives, including letting people and organization know
how wealthy they are
how much they are owed;
how much they owe to someone else
enough information so that they can keep a financial check on the things they
do

7. WHAT IS
BOOKKEEPING?
The process of recording data
relating accounting transactions
in the accounting books.

8. GLOSSARY
Assets: Resources owned by business
Liabilities: Total of funds owed for assets supplied to a business or expenses incurred not yet
paid
Capital: The total of resources invested and left in a business by its owner

9. Accounting Equation
Capital = Assets - Liabilities

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