1. Prof. Anjali KumarProf. Anjali Kumar Topic 1 (31/07/07)Topic 1 (31/07/07)
Introduction to accountingIntroduction to accounting
&&
Financial statement analysisFinancial statement analysis

2. Prof. Anjali Kumar Topic 1 (31/07/07)
IntroductionIntroduction
Accounting – “lingua franca” of
business
Grammar of accounting

3. Prof. Anjali Kumar Topic 1 (31/07/07)
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’
Definition of accounting

4. Prof. Anjali Kumar Topic 1 (31/07/07)
Accounting ProcessAccounting Process
Identification of transaction
Preparation of business documents
Recording of transaction
Posting to the ledger
Continued…..

5. Prof. Anjali Kumar Topic 1 (31/07/07)
Accounting ProcessAccounting Process
Passing of adjusting entries
Preparation of adjusted trial balance
Preparation of unadjusted trial balance
Profit and Loss account Balance sheet
Continued……

6. Prof. Anjali Kumar Topic 1 (31/07/07)
Users of accountingUsers of accounting
• External users
• Internal users

7. Prof. Anjali Kumar Topic 1 (31/07/07)
Kinds of Accounting ActivitiesKinds of Accounting Activities
• Financial accounting
• Income tax accounting
• Cost Accounting
• Management accounting
• Management Reporting

8. Prof. Anjali Kumar Topic 1 (31/07/07)

9. Prof. Anjali Kumar Topic 1 (31/07/07)
“Books should be closed
each year , especially in
a partnership, because
frequent accounting
makes for long
friendship”– Luca
Pacioli(1494)

10. Prof. Anjali Kumar Topic 1 (31/07/07)
“Books should be closed
each year , especially in
a partnership, because
frequent accounting
makes for long
friendship”– Luca
Pacioli(1494)