3. Output
Process
identifying
Input
Business
transaction
(monetary
value)
Recording
Summarising
Analysing
Interpreting
communicating
Information
to users

4. Language of Business
 Decision making tool
 Create accountability and control
 As an Information system


5. Assets = Liabilities + Owners Equity

6.  Internal
Users
› Managers who plan, organise and run
the business
› e.g. production supervisors, marketing
managers, and directors
› Owners of the business

7.  External Users
› Resource providers
 e.g. investors, employees, creditors
› Recipients of goods and services
 e.g. customers, beneficiaries
› Reviewers
 e.g. regulatory agencies, media,
governments, trade unions, special
interest groups

8. conversion
Conservatism
Full
disclosure
consistency
materiality

9. Accounting Entity Assumption
According to this assumption, business is treated as a unit or entity
apart from its owners, creditors and others.
All the business transactions are recorded in the books of accounts
from the view point of the business.
Even the proprietor is treated as a creditor to the extent of his
capital.
Money Measurement Assumption
In accounting, only those business transactions and events which
are of financial nature are recorded.
For example, when Sales Manager is not on good terms with
Production Manager, the business is bound to suffer. This fact will
not be recorded, because it cannot be measured in terms of money.

10. Accounting Period Assumption
The users of financial statements need periodical reports to know
the operational result and the financial position of the business
concern. Hence it becomes necessary to close the accounts at
regular intervals.
Usually a period of 365 days or 52 weeks or 1 year is considered as
the accounting period.
Going Concern Assumption
As per this assumption, the business will exist for a long period and
transactions are recorded from this point of view.
There is neither the intention nor the necessity to wind up the
business in the foreseeable future.

11. transaction
Profit & loss
account
Trading
account
journal
ledger
Trial
balance

12. Financial Accounting :
 It is concerned with recording of business transactions in
the books of accounts in such a way that operating result
of a particular period and financial position on a particular
date can be known.
Cost Accounting:
 It relates to collection, classification and ascertainment of
the cost of production or job undertaken by the firm.
Management Accounting:
 It relates to the use of accounting data collected with the
help of financial accounting and cost accounting for the
purpose of policy formulation, planning, control and
decision making by the management

13. http://www.slideshare.net/mandalina/intro
duction-of-accounting2080632?qid=1f77ed91-943d-48b1-87c5a6e52325c135&v=qf1&b=&from_search=1
 http://www.slideshare.net/anshuvaish01/intr
oduction-of-managementaccounting?qid=1f77ed91-943d-48b1-87c5a6e52325c135&v=qf1&b=&from_search=3


14. http://www.slideshare.net/sukhairihusain
/acc-2033-introduction25127661?qid=1f77ed91-943d-48b187c5a6e52325c135&v=qf1&b=&from_search=
6
 http://www.slideshare.net/fstam23/theintroduction-of-cost-accounting-systemsin-the-greek-national-healthsystem?qid=1f77ed91-943d-48b1-87c5a6e52325c135&v=qf1&b=&from_search=
9


15. THE
END