Scribd
Upload
15 views26 pages

Accounting Principles Overview

The document outlines a course on Principles of Accounting, detailing the structure which includes lectures, group discussions, assignments, presentations, and quizzes. It introduces key concepts such as the characteristics of accounting, the process of accounting, and the distinction between internal and external users of accounting data. The course aims to equip students with the knowledge to interpret, classify, and communicate financial information for decision-making purposes.

Uploaded by

malik saad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
15 views26 pages

Accounting Principles Overview

The document outlines a course on Principles of Accounting, detailing the structure which includes lectures, group discussions, assignments, presentations, and quizzes. It introduces key concepts such as the characteristics of accounting, the process of accounting, and the distinction between internal and external users of accounting data. The course aims to equip students with the knowledge to interpret, classify, and communicate financial information for decision-making purposes.

Uploaded by

malik saad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

PRINCIPLES OF

ACCOUNTING
By
Sara Munir
Lahore Garrison University
Department of Management Sciences
About the Course
▪ Lectures
▪ Collaborative Learning through Group Discussions
▪ Assignments
▪ Presentations
▪ Quizzes

✔ Please keep the session interactive


Ist Lecture
▪ Introduction to Accounting
▪ Characteristics of Accounting
Introduction to Accounting
About Accounting
Process of Accounting
Basic Functions of an Accounting
System

● Interpret
and record Payment
business
transactions.

Ca
r
Basic Functions of an Accounting
System
● Interpret and record business transactions.
❷ Classify similar transactions into useful
reports.
● Summarize and communicate information to
decision makers.
Characteristics of Accounting
Characteristics of Accounting
Qualitative Characteristics
Who Uses Accounting Data?
The financial information that users need depends upon the
kinds of decisions they make. There are two broad groups
of users of financial information:
▪ Internal users
▪ External users.
Internal Users
▪ Internal users of accounting information are managers
who plan, organize, and run the business. These include
marketing managers, production supervisors, finance
directors, and company officers.
▪ In running a business, internal users must answer many
important questions. To answer these and other
questions, internal users need detailed information on a
timely basis. Managerial accounting provides internal
reports to help users make decisions about their
companies.
▪ Examples are financial comparisons of operating
alternatives, projections of income from new sales
campaigns, and forecasts of cash needs for the next year.
External Users
▪ External users are individuals and organizations outside a
company who want financial information about the
company.
▪ The two most common types of external users are
investors and creditors.
▪ Investors (owners) use accounting information to decide
whether to buy, hold, or sell ownership shares of a
company.
▪ Creditors (such as suppliers and bankers) use accounting
information to evaluate the risks of granting credit or
lending money.
External Users
▪ Financial accounting answers these questions. It provides
economic and financial information for investors, creditors, and
other external users. The information needs of external users
vary considerably.
▪ Taxing authorities, such as the Internal Revenue Service, want
to know whether the company complies with tax laws.
▪ Regulatory agencies, such as the Securities and Exchange
Commission or the Federal Trade Commission, want to know
whether the company is operating within prescribed rules.
▪ Customers are interested in whether a company like Telsa will
continue to honor product warranties and support its product
lines.
▪ Labor unions such as the Major League Baseball Players
Association want to know whether the owners have the ability
to pay increased wages and benefits.
Next Lesson Preview
▪ Business, Types of Business and its Nature &
classification

You might also like