1. Accountancy

2. Friar Luca Pacioli (Paciolo), the Father of Accountancy

3. Definition of Accounting
The Committee on Terminology of the American Institute
of Certified Public Accountants (AICPA defined accounting
AICPA)
AICPA
thus, in 1941:
Accounting is 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 a financial character, and interpreting the results
thereof.

4. Accounting as an information system in
business and economic decision making
Accounting Decision makers
Business activities DATA
and transactions Recording of data Processing of data Communication

5. Accounting concepts
Separate Entity concept
Dual aspect concept
Going concern concept
Accounting period concept
Money measurement concept
Periodic matching of cost and revenue concept
Relevance
Accrual

6. Accounting concepts
Separate Entity concept
Dual aspect concept
Going concern concept
Accounting period concept
Money measurement concept
Periodic matching of cost and revenue concept
Relevance
Accrual

7. Accounting conventions
Convention of consistency
Convention of conservatism
Convention of materiality
Convention of full disclosure

8. Accounting conventions
Convention of consistency
Convention of conservatism
Convention of materiality
Convention of full disclosure

9. Cash and Accrual Based
Accounting Systems
Cash-basis accounting is a method of
bookkeeping that records financial events based
on cash flows and cash position. Revenue is
recognized when cash is received and expense is
recognized when cash is paid. In cash-basis
accounting, revenues and expenses are also called
cash receipts and cash payments.
Cash-basis accounting does not recognize
promises to pay or expectations to receive money
or service in the future, such as payables,
receivables, and prepaid expenses.

10. Cash and Accrual Based
Accounting Systems
Accrual-basis accounting records financial events
based on events that change your net worth (the
amount owed to you minus the amount you owe
others). Standard practice is to record and
recognize revenues in the period in which they
incur and to match them with related expenses in
a process known as matching or expense
matching. Even though cash is not received or
paid in a credit transaction, they are recorded
because they are consequential in the future
income and cash flow of the company. Accrual-
basis is GAAP compliant.