chapter 1
DESCRIPTION
9oTRANSCRIPT
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FINANCE & ACCOUNTING (PHM1005)BIBI AKHTAR BT [email protected]
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LEARNING OBJECTIVESDefinition of accounting, financial accounting, management accounting & financial management
Outline the uses and purpose of accounting and the practice of accountancy
Explain the nature and purpose of financial statements Identify the wide range of users of financial information
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DEFINITIONACCOUNTING is a process of:Identifying economic activity relevant to a particular organization
Recording those events (also classifying & summarizing)
3.Communicating those info by preparing & distribution of accounting report.
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how are we doing, and are we doing well or badly?which problems should be looked at?which is the best alternative for doing a job? The three questions generally answered by accounting:
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BRANCHES OF ACCOUNTING
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DEFINITIONFINANCIAL ACCOUNTING The process of producing financial statements for external users such as shareholders, creditors and governmental authorities
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DEFINITIONMANAGEMENT ACCOUNTING A field of accounting that provides economic and financial information for managers and other internal users.
Performs 3 functions:1.Planning2.Organizing & directing3.Controlling
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Financial Accounting vs Management AccountingFINANCIAL ACCOUNTING -External Users-Financial statements-To provide general-purpose information for all users-Verification by independent audit by certified public accountant
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Financial Accounting vs Management AccountingMANAGEMENT ACCOUNTING-Internal users officers, managers etc-Internal reports-To provide special-purpose information for a particular user for a specific decision-No independent audit
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DEFINITIONFINANCE-A discipline concerned with determining value and making decisions.
FINANCIAL MANAGEMENT-An area of finance that focuses on how an organization can create and maintain value.
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Features Of Useful Financial Information
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Accounting Concepts
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Users Of Financial And Accounting Information
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PRODUCT OF FINANCIAL ACCOUNTINGFINANCIAL STATEMENTS
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FINANCIAL STATEMENTSProfit and loss account
Balance sheet
Cash flow statement