Accounting
the process of systematically recording, analyzing, and interpreting your business’s financial
information. Business owners use accounting to track their financial operations, meet legal
obligations, and make stronger business decisions.
is a mix of tactical and analytical tasks.
is both an art and science
is the process of recording financial transactions pertaining to a business.
Types of accounting
Financial Accounting
Management Accounting
Tax Accounting/Taxation
Government Accounting
Auditing
The 5 Account Types
Assets
Liabilities
Expenses
Income (Revenue)
Equity.
The accounting process includes;
-summarizing
-recording
-analyzing
-reporting
Financial statements used in accounting are a concise summary of financial transactions over an
accounting period, summarizing a company's operations, financial position, and-cash flows.-
Generally Accepted Accounting Principle (GAAP)
refer to a common set of accounting rules, standards, and procedures issued by the-Financial
Accounting Standards Board(FASB).
is guided by ten key tenets and is a rules-based set of standards. It is often compared with
the-International Financial Reporting Standards(IFRS).
aims to improve the clarity, consistency, and comparability of the communication of financial
information.
Financial Accounting Standards Board(FASB)
develops and issues financial accounting standards through a transparent and inclusive process
intended to promote financial reporting that provides useful information to investors and others
who use financial reports. The Financial Accounting Foundation (FAF) supports and oversees the
FASB.
International Financial Reporting Standards(IFRS)
are a set of accounting standards that govern how particular types of transactions and events
should be reported in financial statements. They were developed and are maintained by the
International Accounting
Standards Board (IASB).
Financial Accounting Foundation (FAF)
is the independent, private-sector, not-for- profit organization based in Norwalk, Connecticut,
responsible for the oversight, administration, financing, and appointment of the FASB and the
Governmental Accounting Standards Board (GASB).
