Introduction to Accounting for Entrepreneurs

Introduction to Accounting
MBA 643: INTRODUCTION TO ENTREPRENEURSHIP

Introduction to Accounting

LECTURE SERIES
WEEK 7, LECTURE 8

1

Introduction to Accounting
Learning Objectives
This Chapter would enable you to understand:
Definitions of Accounting
Meaning of Accounting
Attributes of Accounting
Accounting Process
Branches of Accounting
Book Keeping, Accounting and Accountancy
Difference between Book Keeping and Accounting

2

Introduction to Accounting
Learning Objectives
Objectives of Accounting
Functions of Accounting
Advantages of Accounting
Limitations of Accounting
Accounting Information and its' Types
Users of Accounting Information
Systems of Accounting

3

Introduction to Accounting
DEFINITION OF ACCOUNTING
"Accounting is the art of recording, classifying and summarising 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."
-American Institute of Certified Public Accountants

4

Introduction to Accounting
DEFINITION OF ACCOUNTING
"Accounting
classifying

is

the

business

science

of

transactions

recording and and

events,

primarily of a financial character, and the art of making significant

summaries,

analysis

and

interpretations of those transactions and events and communicating the results to persons who must make decisions or form judgment."
-Smith and Ashburne

5

Introduction to Accounting
DEFINITION OF ACCOUNTING
"Accounting is the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information." -American Accounting Association

6

Introduction to Accounting
Meaning of Accounting
Thus, accounting is a process of collecting, recording, summarising and communicating financial information to the users for decision-making.

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