Saturday, 9 November 2019

Unit 1: Introduction to Accounting

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                                      Unit 1: Introduction to Accounting    





Financial accounting recorded business transactions on double-entry basis and helped ascertainment of profi t or loss for the given period and valuation of stock of assets and liabilities on a given date.

Management accounting is the accounting system for making decisions of the business enterprise.

Cost accounting is related with the ascertainment of cost of the product in a period.

Human Resource Accounting means the accounting for human being as now in an organization human being is treated as an asset like other physical assets.

It is recorded in the books like other assets.

Responsibility accounting is a special technique of management under which accountability is established according to the responsibility delegated to the various levels of management.

Management accounting is based on the past or yesteryear information of cost accounting and fi nancial accounting which infl uences the effectiveness of the entire management accounting.

The cost accounting is very closely-related to fi nancial accounting.

Few authorities of accounting consider cost accounting to be the branch of fi nancial accounting.

The fundamental principles of double entry system are applicable in fi nancial accounting as well as cost accounting.

Cost Accounting: This helps management to conduct performance appraisal and also facilitates in formulating price policies.

Financial Accounting: Financial accounting is a traditional method of accounting that supplies historical information about the fi rm during the past.

Human Resource Accounting: Human Resource Accounting means the accounting for human being as now in an organization human being is treated as an asset like other physical assets.

It is recorded in the books like other assets.

Management Accounting: Management accounting provides necessary information to assist the management in the creation of policy and in the day-to-day operations.

Responsibility Accounting: Responsibility accounting is a special technique of management under which accountability is established according to the responsibility delegated to the various levels of management.





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