Introduction to Accountancy

Accountancy as the word suggest, it refers to congregation of recording, classifying,summarizing and interpreting the day to day financial transaction.

  • In simple words, recording of business transaction after analyzing, classifying,summarizing and interpretation indicates the meaning of accounting

It is the language of business. Presentation of financial information (like cash flow,debt-equity structure,assets and liabilities positions) by accountants assist CEO and board of director of company to make decisions that lead the business to great level of success and it helps internal as well as external users in finding some important questions:

  • do the company have a good payout ratio ?
  • do the company possess enough cash to meet its liabilities and other expenses ?
  • what are the companies current investment and future investment plans ?
  • what are the final position of firm in terms of balance sheet , trading and profit and loss account ?

Just like a tree has branches, so is accounting. here are the branches of accounting and we will describe it later:

1.Financial accounting 2. Cost accounting 3.Managerial accounting

4.Auditing accounting 5.tax accounting 6.Fiduciary accounting

7.Project accounting 8.Forensic accounting 9.Fund accounting

10.Government accounting 11.Political accounting 12.International accounting

Among all the business knowledge we acquire, the study and practical knowledge of accounting is the most useful.

Accounting is one of the most important pillars for smooth conduct of business enterprises

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