accounting and financial management project no. 1-2

8/3/2019 Accounting and Financial Management Project No. 1-2

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Accounting and Financial

ManagementGroup Members:

Azhar Khan

Fauzia Khan

Ahmad FarrukhFatima Khatoon

Arshiya Farooqui

Inesh Rakhimbekova


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IS A PROCESS OF IDENTIFYING, MEASURING, RECORDING, CLASSIFYING,SUMMARIZING & ANALYZING MONETARY TRANSACTIONS OF A BUSINESS.

TO KEEP SYSTEMATIC REPORT

TO PROTECT BUSINESS PROPERTIES

TO ASCERTAIN THE OPERATIONAL PROFIT AND LOSSES

TO ASCERTAIN THE FINANCIAL POSITION OF BUSINESSTO FACILITATE RATIONAL DECISION MAKING


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Accounting replace human memoryAccounting helps in knowing profit

Helps in knowing financial position of organization

Helps in paying taxes

Accounting helps in raising ore funds by supplying information to

investors and creditorsHelps in planning for expansion

Helps in getting bank loan

Accounting does not provide timely information

Accounting ignores the importance of non monetary information

Accounting does not provide detail analysis


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the amount of money invested by anentrepreneur in its business from its own resources.

all tangible and intangible things which can be converted into cash or which

can fetch some money value at an point of time for the business.are assets which change over a long period of time

usually more than 1 year e.g. Land, building, machine

assets which can be converted into cash in a short period usuallywithin 1 year.

the amount borrowed from outsiders which has to be paid in future.

amount paid for using services or for goods.expenses which are paid in advance but goods or services are

not received yet.

expenses which are not paid for yet but goods or serviceshave been received.

revenue or earning by a business

income which is earned but not yet received.Income received In advance income which is not yet earned but received.

those people from whom the goods/services have been purchased oncredit and money has to be paid in future.

those people to whom goods/services have been sold on credit andmoney has to be received in future.


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DOCUMENTS, WHICH COMMUNICATE THESE

FINDINGS ABOUT THE PERFORMANCE OF AN ORGANIZATION IN

MONETARY TERMS.

AN AMOUNT WITHDRAWN BY THE OWNER FROM THE

BUSINESS FOR HIS PERSONAL USE.

ACCOUNTING EQUATION


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RECORDING OF ONLY THOSE

TRANSACTIONS WHICH CAN BE EXPRESSED IN MONETARY TERM.

A BUSINESS UNIT IS A SEPARATE ENTITY WITH ITS OWN IDENTITY AND IS

DISTINCT FROM THE OWNERS OF THE ENTERPRISE.

AN ARTIFICIAL PAUSE TO PREPARE A

FINANCIAL STATEMENT.

ASSUMED THAT THE BUSINESS ENTITY

WOULD CONTINUE TO OPERATE FOR AN INDEFINITELY LONG PERIOD IN

FUTURE.


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the assets/resources owned by the firm should be shown at the acquisitioncost and not at their current market value.

not to anticipate profits before they are actually realized but always

recognize & provide for all probable future losses.

expenses incurred/revenues earned should be considered as

expenses/revenues of the same accounting period irrespective of it being

paid or received in advance or is outstanding.

Should be consistency in recording a specific item so that

it ensures comparability over the years.


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These accounts include accountsrelated to persons, debtors, creditors.

Eg. The account of XYZ company.

Dr. THE RECEIVER

Cr. THE GIVER

These are the accounts which relate to the assetssuch as machinery account, land and building accounts, etc.

Dr. WHAT COMES IN

Cr. WHAT GOES OUT

These are the accounts related to income,expenses, gains &losses.

E.g. Wages paid account, purchases account, sales account etc.

Dr. EXPENSES &LOSSES

Cr. INCOMES &GAINS

accounting and financial management project no. 1-2

Documents