Information to users: Many users need financial information to make important decisions. These users can be investors, creditors, labour unions, Trade Associations, etc. (2 Marks) Q3. The financial information is regularly communicated through accounting reports. It begins at the start of the accounting period and continues during the whole period. Table 1.1 Difference between Bookkeeping and Accounting. Communication is essential no matter what career you find yourself in, but it’s especially crucial for those in the business world. !1. Recording accounting transactions December 18, 2020 / Steven Bragg. It describes how accounting records have to be maintained. Get unlimited access to the best preparation resource for UGC Public-Administration: fully solved questions with step-by-step explanation- practice your way to success. Items of non-financial character such as changes in managerial policies, etc. Accounting is the systematic process of identifying, measuring, recording, classifying, summarizing, and interpreting financial information, and communicating the results thereof by way of the preparation of financial statements. In China and in Egypt accounting was used for maintaining revenue records of government treasury. Evolution of Accounting as per Indian mythology Chitra Gupta is responsible for maintaining accounts in God’s court. Nature of Accounting 1. In his book he used present day popular terms of accounting Debit (Dr.) and Credit (Cr). items of financial character are to be recorded. How would you like to explain the statement? In accounting identifying economic events involves selecting the economic activities related to a particular organization such as paying out salaries to employees of a particular entity. Identifying, recording, and communicating. We understand, from the prior video, that accounting is “the language of business”. Accounting is the process of identifying, recording, and communicating the economic events of an organization to interested users of the information. In our society resources must be allocated among and within all kinds of entities. Book-keeping is the first step to accounting. You might be wondering: Why do accountants need communication skills in the first place? uts 2014 accounting for business decisions lecture financial accounting accounting is the process of identifying, measuring and communicating economic. That is why important items like appointment, signing of contracts, etc., are not shown in the books of accounts. It is concerned with summarizing the recorded transactions, interpreting them and communicating results. As a measurement and communication process for business, accounting supplies information that permits informed jud… Q1. Conceptual Framework: set of concepts to be followed by preparers of financial statements - defines assets !-Four sections: ! Q1. Presenting Financial Information (Identifying, Recording, or Communicating) Communicating Maintaining a log of service costs (Identifying, Recording, or Communicating) Identifying business activities requires that we select relevant transactions and events. Which of the following presents key aspects of the process of accounting in the correct chronological order? Difference between bookkeeping and accounting: Book keeping and accounting can be differentiated on basis of nature, objective, function, basis, level of knowledge, etc. Public accountants may provide auditing services or specialize in tax accounting. Communication: The economic events are identified, measured and recorded in such a manner that necessary information is generated and communicated in a certain form to management and other internal- external users of information. Identification implies determining what transactions are to be recorded i.e. Organisation: refers to a business enterprise whether for profit or not for profit motive. Accounting is the process of identifying, measuring and communicating economic information so a user of the information may make informed economic judgments and decisions based on it. Measurement means quantification of business transactions into financial terms by using monetary unit. Sign in Register; Hide. It is enough to have elementary knowledge of accounting to do book-keeping. Supervise accounting and operational departments and can perform all functions of a Controller.

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