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What is Accounting?
is a
Accounting Identifies and
system that records
Classifies
And summarizes
Communicates
Relevant Analyzes and
the information interprets
Reliable that is
about an organization’s
Comparable business activities.
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Accounting serves as a means to communicate business. Its business operations to various
stakeholders to help in decision making.. It is a process of recording, classifying, summarizing,
analysing and interpreting financial transactions and communicating the results to persons
interested.
Recording: ensures all business transactions are financial in nature and recorded in order. It is
done in the book called “journal”.
Classifying: systematic analysis of the recorded data with a view to group entries of one nature
at one place. Done in a book called ledger. Book contains on different pages, individual account
heads and all financial transactions of similar nature are collected.
Financial transactions: are recorded, transactions that cant be expressed in monetary terms are
not recorded.
Analysis and interpretation: helps in making meaningful judgment about the company.
Communicates: communicated in proper form (relevant, reliable, comparable) to the person and
users.
What is accounting?
Internal Users
External Users
In this book, we will spend most of our time developing financial accounting information
for external users. Some of the material we cover will prove useful to managers and other
internal decision makers
Opportunities in Accounting
Managerial Taxation
Financial
•General accounting •Preparation
•Preparation •Cost accounting •Planning
•Analysis •Budgeting •Regulatory
•Auditing •Internal auditing •Investigations
•Regulatory •Consulting •Consulting
•Consulting •Controller •Enforcement
•Planning •Treasurer •Legal services
•Criminal •Strategy •Estate plans
investigation
•Lenders •FBI investigators
•Consultants •Market researchers
•Analysts •Systems designers
Accounting-related •Traders •Merger services
•Directors •Business valuation
•Underwriters •Forensic accountant
•Planners •Litigation support
•Appraisers •Entrepreneurs
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Careers in accounting can follow many paths.
Management accountants help track product costs, prepare budgets and serve as a
consultant to managers.
The field of taxation includes everything from the preparation of tax returns to consulting
with clients about estate and gift planning.
Individuals with accounting backgrounds may move into other areas of importance
within an organization. Individuals with accounting training often become business
owners and managers. They are in high demand in all financial and investigative fields.