Introduction to accounting

1. INTRODUCTION TO
ACCOUNTING

2. Account
• It is a unit of information that represents
business records.
• There are five types of accounts: Asset,
Liability, Equity, RevenueandExpense.

3. Accounting
• It is concerned with the use of which the
records are put, their analysis and
interpretation.
• It is the process of recording business
activities that make changesto accounts.
• Sales of products, Revenue from services
earned, Buying products and/or services and
soon.

5. DEFINITION
• Definition by the American Institute of
Certified Public Accountants (Year 1961):
• “Accounting is the art of recording, classifying
and summarizing in a significant manner and
in terms of money, transactions and events
which are, in part at least, of a financial
character, and interpreting the result thereof”

6. Objectives of Accounting