INTRODUCTION TO ACCOUNTING.
Hey Guys, we
are starting a new Subject Today. For the Commercial Class People, other
subjects will be introduced as time goes on, so sit back and enjoy.
WHAT IS FINANCIAL ACCOUNTING?
Account can be as the Recording,
Classifying, Creating, Summarizing and Communicating of Financial Information
to interested Parties, to help in making specific Business Decisions. In Order
words, it includes all processes involved in preparing a Financial Document.
Book Keeping
is the act of Recording and Classifying Financial Transactions on a Daily Basis
into Appropriate Books. It is a Part of Accounting; it is done using the Double
Entry System.
IMPORTANCE OF BOOK KEEPING &
ACCOUNTING.
1. Accounting Information can be used
for Decision-Making.
2. It Provides Permanent Records for all
Transactions.
3. It Helps to Ascertain the True
Position of the Business.
4. It Helps to Prevent Fraudulent
Practices.
5. It is used for Tax Assessment.
6. It Helps to Ascertain the Assets and
Liabilities of the Business.
7. It Shows the Income and Expenditure
of the Company.
