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Financial ManagementAccounting - Accounting ObjectivesAccounting: Language of the Business. To define Accounting: “ the Process of identifying, measuring, and communicating economic information to permit informed judgments and decisions by users of the information: a) It is an art of recording and classifying business transactions. All accounting transactions are analysed in such a way that it becomes possible to prepare financial statements. b) Events and transactions of a financial nature are recorded while events of non-financial nature are not. c) It is an art of summarizing, analyzing and interpreting the business transactions. The summarized information is analysed and interpreted by calculating ratios and percentages to evaluate the past and present performance. This analysis helps to prepare a good financial plans for the future. d) The basic aim of accounting is to create information in a form useful to the users. Summaries of the transactions and events are reported through financial statements. All the information should be provided in time to the users so that they are able to understand and analyse it. Objectives: a) To make crucial decisions with the available limited resources b) Direct and control organisations physical and manual resources c) Maintaining systematic records and reporting on the protection of resources d) Help in special functions and control the financial resources Principles: a) Accounting Concepts (Based on Logical considerations) b) Accounting Conventions ( Practicable – include customs and traditions) c) Accounting Standards (guidelines issued by Accounting Standards Board) Term: GAAP: Generally Accepted Accounting Principles Cash and Acrual based Accounting Accounting and Accounting Objectives Income Tax Slabs FY 2014-15 and AY 2015-16 Read More.. cheque deposits.. availabiity of funds... ~ ngoportal |
