Deverlopment Period

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Financia Accounting

American Professors, “Accounting is an information system for measuring, processing, and communicating information that is useful in making economic deciesions”. Indian professor, “Accounting is a ‘vision’ of business. Since accounting farnishes the ‘eye’ through which business and administration ‘sec’” Bangladeshi Professor, “Accounting is the concrete economic science”. Accounting consist of three basic activities

* It identifies
* Recordsa
* Communicates the economic events
History of Accounting:
1. Deverlopment period (upto 1494)
a. Stone Age
b. Old Age
c. Exchange Age
d. Money Age
2. Pre-Explanatory period: 1494 – 1800
3. Explanatory Period: 1800 – 1900
4. Modern period: 1900 on wards

Account is an Aid to Management:
1. Financial statement
2. Policy determination
3. Planning
4. Organizing
5. Co-ordinating
6. Motivating
7. Controlling
8. Decision- Making
9. Increasing Productivity
10. Latest Information
11. Professonal Advice

Accounting Process – TRANSACTION
Transactions are business economic events recorded by Accounts. Each transaction must have a dual effect on the accounting equation. Characteristics of Transactions:
1. Money measurement
2. Financial change
3. Two parties
4. Independent
5. Visible or invisible
An Accounting is an accounting record of increases and decreases in a specific asset, liability or owner’s equity item. Double Entry system: An introduction to the double entry system that is the foundation of modern accounting. In the double entry system the dual (two-sided) effect of each transaction is recorded in appropriate accounts. This system provides a logical method for recording transactions. The term Devit and Credit are directional signals. Debit indicates left, and credit indicates right. They indicate which side of a T- account a number will be recorded on. We...
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