Accounting for management

WHY AFM? ROLE OF A MANAGER?

INTRODUCTION

WHAT IS ACCONTING? The language of business. A means to communicate financial information. A way to convey information about a business to users.

INTRODUCTION
OBJECTIVE TYPES OF BUSINESS RESOURCES FOR COMMENCEMENT OF BUSINESS

GENERAL TRANSATIONS

HISTORY
VERY OLD. MORDERN ACCOUNTING LUCAPACIOLO- 15TH CENTURY 19TH CENTURY BRANCHES OF ACCOUNTING.

Who uses accounting information?

Owners

Managers
Investors Creditors Government (tax assessment) Regulators Customers

DEFINITIONS
Accounting is the method of identifying , arranging and passing on the required financial information to the decision makers in business.

The American institute of certified public accounts defined accounting as follows: accountancy is the art of classifying , analyzing, recording and summarizing atleast part of the available financial information for the purpose of passing on the results of these exercises to the business managers and to the management.

Advantages of accounting
The net profit \ loss

Efficiency performance
Cost of production of goods Products continuation Easy access

Advantages of accounting

Financial position can be assessed Easy access

Statutory returns
Polices of business yielding profit or not Returns can be comparable

The concepts of accounting

Business entity concept

Money measurement concept

Cost concept

Going concern concept

Realisation concept Dual aspect concept

Accounting conventions
Consistency Disclosure Relevance Feasibility Conservation

Accounting Terminology
Business transactions Goods Assets Capital Drawings Debtor Creditor Account Expenditure