Accounting For Managers - Basics of Accounting
INTRODUCTION OF ACCOUNTING
Accounting is aptly called the language of business. This designation is applied to accounting because it is the method of communicating business information. The basic function of any language is to serve as a means of communication.
Accounting duly serves this
function. The task of learning accounting is essentially the same as the task
of learning a new language. But the acceleration of change in business
organization has contributed to increase the complexities in this language.
Like other languages, it is undergoing continuous change in an attempt to
discover better means of communications. To enable the accounting language to
convey the same meaning to all stakeholders, it should be made standard. To
make it a standard language certain accounting principles, concepts and standards
have been developed over a period of time. This lesson dwells upon the
different dimensions of accounting, accounting concepts, accounting principles
and the accounting standards.
Learning Objectives
After reading this lesson, the reader should be
able to:
o Know the
Evolution of Accounting
o Understand
the Definition of Accounting
o Comprehend
the Scope and Function of Accounting
o Ascertain
the Users of Accounting Information
o Know the
Specialized Accounting Fields
o Understand
the Accounting Concepts and Conventions
o Realize
the Need for Accounting Standards
Contents
1.
Evolution of accounting
2.
Book keeping and accounting
4.
Scope and functions of accounting
5.
Groups interested in accounting information
6.
The profession of accounting
7.
Specialized accounting fields
8.
Nature and meaning of accounting principles
9.
Accounting concepts
10.
Accounting conventions
11.
Summary
12.
Key words
13.
Self assessment questions
