Basics of Accounting and
Accounting Equation
, What is Accounting?
“The language of business”
“The action or process of keeping financial
accounts”
“Accounting is the systematic and
comprehensive recording of financial
transactions pertaining to a business”
, The
accounting
process
Accounting “links
” decision makers
with economic Accounting
Economic
activities and
activities information
with the results of
their decisions.
Actions
(decisions) Decision
makers
, Definition of Accounting (continued)
The American Institute of Certified Public Accountants
(AICPA) defines accountancy as “the art of recording,
classifying, and summarizing in a significant manner
and in terms of money, transactions and events which
are, in part at least, of financial character, and
interpreting the results thereof.
Accounting Equation
, What is Accounting?
“The language of business”
“The action or process of keeping financial
accounts”
“Accounting is the systematic and
comprehensive recording of financial
transactions pertaining to a business”
, The
accounting
process
Accounting “links
” decision makers
with economic Accounting
Economic
activities and
activities information
with the results of
their decisions.
Actions
(decisions) Decision
makers
, Definition of Accounting (continued)
The American Institute of Certified Public Accountants
(AICPA) defines accountancy as “the art of recording,
classifying, and summarizing in a significant manner
and in terms of money, transactions and events which
are, in part at least, of financial character, and
interpreting the results thereof.
