Introduction Of Accounting

INTRODUCTION OF ACCOUNTING

What is accounting? The language of business. A means to communicate financial information. A way to convey information about a business to users.

Who uses accounting information? 1.Owners 2.Managers 3.Investors (including potential) 4.Analysts on their behalf 5.Creditors (including potential) 6.Government (tax assessment) 7.Regulators 8.Customers

Accounting has two main divisions: •Financial accounting Primarily prepared for users external to the company. Revenues, earnings, assets, etc. •Management accounting Primarily for internal purposes Costing, budgeting, net present value, etc. This lecture will focus only on financial accounting.