accounts

1. In all activities and in all organizations
which require money and other
economic resources, accounting is
required to account for these
resources.
In other words wherever money is
involved accounting is required to
account for it.

2. American Institute of Certified Public
Accountants(AICPA), “Accounting is the art of
recording, classifying and summerising 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 of there of”.

3. Meaning of Book-keeping
 Book-keeping is the science and art of recording
transactions in money or money’s worth, so accurately
and systematically in a certain set of books, regularly
that the true state of businessmans affairs can be
correctly ascertained.
 Book-keeping includes recording of journal, posting in
ledgers and balancing of accounts.

4. Definition of Book-keeping
 A.H Rosenkamph- “Book-keeping is the art of
recording business transactions in a systematic
manner”.

5. Accounting
Financial
Accounting
Cost
Accounting
Management
Accounting

6. Financial accounting is mainly concerned with
regarding business transactions in the books of account for
the purpose of computing profit or loss for a specified
period and also to show the financial position of the
business at the end of the financial period.

7.  Financial statements
 1) Profit and Loss Account
 2) Balance Sheet

8. Objectives Functions
1) Recording
2) Ascertain profit/Loss and Financial position of
business
3)Communicating
4)Meeting legal requirements
5)Interpretation