Ashish

Kumar

Roll no. 08
 Accounting process and its users

identification of economic events

measurement

recording

communication

Prepare accounting report analyze and interpret

Internal users external users

Management at all levels direct interest indirect interest

Office and present and potential regulatory agencies

Other staff investor tax authorities
labour union

(accounting process and users of accounting information)

source- wikipedia.com
(a firm has entity separate from its owners)

In the language of accounting, it is assumed

that both the firm and its owners have different
existence. Hence the books of accounts are
maintained to record the transactions of the business
and not the personnel transaction of the person owing
it.
(business entity would continue to operate indefinitely)

any one should understand that company is going

for a long period of time not for a short span of time.
(accounting records only monetary transactions)

in order to convey meaningful information , all asset

ought to be expressed in a common denomination
therefore firstly expressed in monetary terms and
then recorded in the books of accounts.
 assets /resources owned by a firm
should be shown at acquisition cost in
contrast to their current market value
 every transaction affects
two accounts.
the reliability of accounting
record is mainly attributed to the
principle of duality because it helps in
detection of error.
Both aspects of a transaction are
recorded at the same time in two
separate accounts.
 Requires national/artificial
pause to prepare financial
statements ,normally one year period.
 requires that expenses recognized
in an accounting period are matched
with the revenue recognized in the
period.
. Realization:
implies that revenue
should be considered as
earned/realized on the date of sale of
goods/services to customers in
consideration for cash claims to cash
and not on pending sales.
 “Anticipate no
profit and provide for all possible loss”
Accounting reports should disclose fully
and fairly the information they purport
to represent
Requires consistency in accounting
treatment of items such as
depreciation and inventory valuation to
ensure comparability over the years
Accountant should attach importance to
material details and ignore insignificant
details
Management accounting –M.Y. Khan
P.K.Jain
A to Z Accounting O.P.Gupta
J. Singh
Accounting for mgmt- J. Lal

INTERN…………
Google,wikipedia,indeco………….