Vous êtes sur la page 1sur 8

9/22/2010 An Introduction to Accounting

AN INTRODUCTION TO ACCOUNTING

Allan Shah
Faculty of Business 1
What is accounting?

9/22/2010 An Introduction to Accounting


 Generallyaccepted definition: “Accounting is
the process of identifying, measuring,
summarizing and communicating economic
information to permit informed judgments and
decisions by users of the information.”

2
Where Did Accounting come from?

9/22/2010 An Introduction to Accounting


 Watch the video to find out.

3
Purposes of Accounting

9/22/2010 An Introduction to Accounting


Providing useful information to users.
Providing assistance in decision making.
Performance evaluation tools.
Controlling purposes

4
Characteristics of good accounting information

9/22/2010 An Introduction to Accounting


5
Users of accounting information

9/22/2010 An Introduction to Accounting


 Internal
 Managers
 Employees

 External
 Shareholders
 Potential investors
 Creditors
 Government agencies

6
Accounting Equation

9/22/2010 An Introduction to Accounting


Asset = Liability + Owners Equity

Asset Liability Owners Equity

2009 8,997,500  3,986,500  5,011,000 

2010 9,437,500  4,110,000  5,327,500 

2011 10,345,000 4,527,300  5,817,700 

7
9/22/2010 An Introduction to Accounting
8
Accounting Equation-Chart