scope of financial accounting
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This document discusses the scope of financial accounting and bookkeeping. It defines bookkeeping as a system to maintain business transaction records to determine if a profit or loss was made. The procedures of accounting include generating financial information, recording transactions, classifying data, and summarizing reports. Bookkeeping plays an important role by keeping records, making ledgers, and generating financial reports to help business owners and internal/external users understand the financial flow of the company.
scope of financial accounting
- 1. SCOPE OF FINANCIAL ACCOUNTING PRESENTED BY:RAJAT SHARMA CLASS:F.Y.BMS ROLL NO:659
- 2. INRODUCTION TO BOOK KEEPING In the modern time, every day many business activities are carried out. Each such activity involves lots of dealings of purchase , sales , etc. These dealings are also called transactions. Transactions can be for: Purchase of goods, Sale of goods, Payment of money to suppliers, Payment of money from customers.
- 3. MEANING Book keeping is a system of maintaining books of accounts relating to business dealings from which the owner can find out whether he has made a profit or loss for the particular year.
- 4. PROCEDURE OF ACCOUNTING Procedure of accounting includes: • Generating financial information • Recording • Classifying • Summarizing Using the financial information • Internal users: board of directors, partners, managers. • External users: investors, suppliers, lenders, customers.
- 5. THE SCOPE OF BOOK KEEPING Book keeping is one of the in demands job nowadays for companies. It really helps the flow of the business transaction. Book keeping includes keeping records. It also includes making ledger. It makes financial reports. Above all book keeping, for business entrepreneurs it is wiser to pick the best person to do the book keeping of the company.