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    Lecture 1

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    Accounting Lecture

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    Lecture 1

    Uploaded by

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    Accounting Lecture

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    lecture 1

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    Accounting Lecture

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1 views26 pages

    Lecture 1

    Uploaded by

    jiaali56789
    Accounting Lecture

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 26

    Introduction to

    Accounting
    Lecture No.1

    By : Mr.Atif Iftikhar
    Organization
    Organization

    Organization
    An organization that produces
    goods or services to satisfy
    customer needs and generate
    profits.
    Types of Businesses

    A business
    A business owned by two or
    owned by one more people.
    person.

    Sole Proprietorship Partnership

    A legal entity separate from its


    owners.

    Corporation/ Organization
    New Book Shop

    • Contact : Wholesaler / Publisher


    • Expenses: Advertisement
    • Paid Salary
    • Electricity Bill
    • Shop Rent
    • Travelling
    Accounting

    Recording of Business data

    Classification of recorded data

    Analysis of summarized data

    Prepration of Statements & Reports


    Introduction To Accounting

    Accounting is often described as the


    “language of business” because it
    is the system used to measure,
    record, and communicate financial
    information.
    Introduction To Accounting

    The process of recording financial


    transactions that take place in a
    business.
    Objectives Of Accounting

    To keep systematic record

    Knowledge of Financial Position

    Describe the Liquidity Position

    Facilitate the Financial Decision-Making

    To provide information to various parties

    Provide information about embezzlement


    Accounting Information

    • Accounting information is the data


    collected and processed to provide
    insights into a company's financial
    performance and position.

    • This information can be used by


    various stakeholders.
    Accounting Information

    • Internal Users: Employees, managers,


    and owners who use accounting
    information to make decisions within the
    company.
    Accounting Information

    • External Users: Investors, government


    agencies, and customers who use
    accounting information to assess the
    company's financial health and
    performance.
    Users of Accounting
    Information
    Owner

    Management / Employees

    Researchers

    Creditors

    Government

    Investors
    Lenders
    Accounting
    Information

    Internal Vs
    External
    Users
    Internal users

    Resource Performance
    allocation evaluation

    Accounting It helps to assess


    information helps the performance
    managers decide of departments.
    where to allocate
    resources
    effectively.
    Internal users

    Strategic planning

    Accounting information is
    essential for developing and
    implementing business
    strategies.
    External users

    Investment
    Credit decisions
    decisions

    Investors use
    Creditors use
    accounting
    accounting
    information to
    information to
    assess the
    evaluate the
    company's
    company's
    investment
    creditworthiness.
    potential.
    Types of Accounting

    Financial Accounting Managerial Accounting

    This type of accounting focuses This type of accounting provides


    on providing information to information to internal users for
    external users. It includes decision-making within the company.
    financial statements like the It includes cost analysis, budgeting,
    income statement, balance and performance evaluation.
    sheet, and cash flow statement.

    Example: A company's income


    statement shows its profits or losses Example: A manager might use cost
    over a specific period, while the balance analysis to determine the most cost-
    sheet shows its assets, liabilities, and effective way to produce a product.
    equity at a particular point in time.
    Accounting Systems
    Accounting Systems

    Accounting systems are the methods


    and procedures used to record,
    classify, summarize, and report
    financial information. They can be
    manual or computerized.
    Accounting Softwares
    computerized accounting system

    1st 2nd 3rd 4th

     Quick  Net  Peach  Sage 50


    Books Suits Tree Premium

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