Meaning Of Accounting

Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the results thereof. -AICPA

Basic Framework

Concepts

Standards

Postulates

Principless

Types Of Accounting
Accounting

Government Accounting

Enterprise Accounting

Social Accounting

Financial Accounting

Management Accounting

Cost Accounting

Accounting Principles
Accounting Principles are rules of action or the methods and procedure of accounting commonly adopted while recording business transactions.

Functions Of Financial Accounting

Recording Of Transactions Making Information more Reliable Classification Of Data

Functions Of
Financial Accounting Communication of Results

Summarising

Interpretation

Classification of Accounting Principles

Business Entity Concept Going Concern Concept Cost Concept Dual aspect Concept Accounting Concepts Money Measurement Concept Accounting Period Concept Realisation Concept Convention of Conservatism Matching Concept Convention of Materiality

Accounting Principles
Accounting Conventions

Convention of Disclosure Convention of Consistency

Limitations of Financial Accounting

Historical Nature Non-Presence of Uniform Methods Not Helpful Cost Control

Not Helpful in Price Determination

Limitations of Financial Accounting

Quantitative Information

Not Helpful in Strategic Decisions

Possibility of Manipulation