Financial Accounting Notes:

1. Definition: Financial accounting is the process of recording, summarizing, and reporting financial transactions of an organization to external stakeholders such as investors, creditors, and regulators.

2. Generally Accepted Accounting Principles (GAAP): These are a set of accounting rules and guidelines that companies must follow when preparing financial statements. The purpose of GAAP is to ensure that financial statements are accurate, consistent, and comparable across companies.

3. Financial Statements: These are the key output of financial accounting and include the following:

- Balance Sheet: This shows the financial position of a company at a specific point in time. It includes assets, liabilities, and equity.

- Income Statement: This shows the financial performance of a company over a period of time. It includes revenues, expenses, and net income.

- Statement of Cash Flows: This shows the inflows and outflows of cash for a company over a period of time. It includes operating, investing, and financing activities.

4. Accounting Equation: This is a fundamental concept in financial accounting that states that assets must equal liabilities plus equity. This equation is used to prepare the balance sheet.

Cost Accounting Notes:

1. Definition: Cost accounting is the process of recording, classifying, analyzing, and allocating costs associated with producing a product or service. The purpose of cost accounting is to determine the cost of goods sold and to aid in decision making.

2. Types of Costs: There are several types of costs that a company may incur, including:

- Direct Costs: These are costs that can be directly attributed to a specific product or service.

- Indirect Costs: These are costs that are not directly attributable to a specific product or service.

- Fixed Costs: These are costs that do not change with changes in production volume.

- Variable Costs: These are costs that change with changes in production volume.

3. Costing Methods: There are several costing methods that can be used in cost accounting, including:

- Job Costing: This method is used when the company produces customized products or services.

- Process Costing: This method is used when the company produces standardized products or services.

- Activity-Based Costing: This method is used when the company wants to allocate costs based on the activities involved in producing a product or service.

4. Cost-Volume-Profit Analysis: This is a tool used in cost accounting to determine the breakeven point for a product or service. It considers the costs, revenues, and volume of production to determine the profit or loss for a specific period.