PPT - Introduction to Accounting | Accountancy Class 11 - Commerce PDF Download

 Page 1


Introduction to 
Accounting
Page 2


Introduction to 
Accounting
Overview
Evolution of Accounting
Accounting has evolved 
from mere record-keeping 
to providing relevant 
information for decision-
making teams.
Modern Accounting 
Roles
Today's accountants work 
in exciting areas like 
forensic accounting, e-
commerce, financial 
planning, and 
environmental accounting.
Information System
Accounting collects data and communicates economic 
information about organisations to a wide variety of users.
Page 3


Introduction to 
Accounting
Overview
Evolution of Accounting
Accounting has evolved 
from mere record-keeping 
to providing relevant 
information for decision-
making teams.
Modern Accounting 
Roles
Today's accountants work 
in exciting areas like 
forensic accounting, e-
commerce, financial 
planning, and 
environmental accounting.
Information System
Accounting collects data and communicates economic 
information about organisations to a wide variety of users.
Meaning of Accounting
AICPA Definition (1941)
The art of recording, 
classifying, and summarising 
transactions in monetary 
terms, and interpreting the 
results.
AAA Definition (1966)
The process of identifying, 
measuring and 
communicating economic 
information to permit 
informed judgments by 
users.
Modern Understanding
Identifying, measuring, 
recording and 
communicating economic 
events of an organisation to 
interested users.
Page 4


Introduction to 
Accounting
Overview
Evolution of Accounting
Accounting has evolved 
from mere record-keeping 
to providing relevant 
information for decision-
making teams.
Modern Accounting 
Roles
Today's accountants work 
in exciting areas like 
forensic accounting, e-
commerce, financial 
planning, and 
environmental accounting.
Information System
Accounting collects data and communicates economic 
information about organisations to a wide variety of users.
Meaning of Accounting
AICPA Definition (1941)
The art of recording, 
classifying, and summarising 
transactions in monetary 
terms, and interpreting the 
results.
AAA Definition (1966)
The process of identifying, 
measuring and 
communicating economic 
information to permit 
informed judgments by 
users.
Modern Understanding
Identifying, measuring, 
recording and 
communicating economic 
events of an organisation to 
interested users.
Economic Events
1
Definition
Economic events are 
happenings of 
consequence to a 
business that consist 
of transactions 
measurable in 
monetary terms.
2
External Events
Transactions between 
an organisation and 
outsiders, such as 
sales to customers or 
purchases from 
suppliers.
3
Internal Events
Transactions occurring entirely within an enterprise, 
like supply of materials from stores to manufacturing.
Page 5


Introduction to 
Accounting
Overview
Evolution of Accounting
Accounting has evolved 
from mere record-keeping 
to providing relevant 
information for decision-
making teams.
Modern Accounting 
Roles
Today's accountants work 
in exciting areas like 
forensic accounting, e-
commerce, financial 
planning, and 
environmental accounting.
Information System
Accounting collects data and communicates economic 
information about organisations to a wide variety of users.
Meaning of Accounting
AICPA Definition (1941)
The art of recording, 
classifying, and summarising 
transactions in monetary 
terms, and interpreting the 
results.
AAA Definition (1966)
The process of identifying, 
measuring and 
communicating economic 
information to permit 
informed judgments by 
users.
Modern Understanding
Identifying, measuring, 
recording and 
communicating economic 
events of an organisation to 
interested users.
Economic Events
1
Definition
Economic events are 
happenings of 
consequence to a 
business that consist 
of transactions 
measurable in 
monetary terms.
2
External Events
Transactions between 
an organisation and 
outsiders, such as 
sales to customers or 
purchases from 
suppliers.
3
Internal Events
Transactions occurring entirely within an enterprise, 
like supply of materials from stores to manufacturing.
Identification, Measurement, 
Recording and Communication
Identification
Determining which events to record by observing activities and 
selecting those of financial character.
Measurement
Quantifying business transactions into financial terms using 
monetary units like rupees and paise.
Recording
Entering measured events in books of account chronologically 
to make financial information available when needed.
Communication
Providing useful information through accounting reports to 
various internal and external users.