CHAPTER 1 INTRODUCTION TO ACCOUNTING

Accounting is a process of identifying, recording, classifying, summarizing, communicating and interpreting the results of business or economic transactions to users in order for them to make better decisions.

Accounting is a process of identifying, recording and classifying economic transactions to users.

Accounting is a process of preparing Income Statement and Financial Position Statement.

Internal users

External users

Internal & External users

Financial Accounting

Managerial Accounting

Tax Accounting

Forensic Accounting

Business own by two or more person

Business ownership divided by share

Business own by one person

Services and merchandising

Services and manufacturing

Services, manufacturing and merchandising

Statement of Comprehensive Income, Statement of Owner’s Equity and Statement of Financial Position

Statement of Comprehensive Income, Statement of Owner’s Equity, Statement of Financial Position and Statement of Cash Flows

Statement of Comprehensive Income, Statement of Owner’s Equity, Statement of Financial Position and Budget