PPT - Introduction to Accounting | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year PDF Download

 Page 1


LECTURE 1: 
INTRODUCTION
Page 2


LECTURE 1: 
INTRODUCTION
History and development of 
accounting record
Ancient accounting record:
Using system called “stewardship”. The 
document facilitate the owner to control 
and identify their asset, which is under the 
custody of the steward
Renaissance in Italy:
Accounting technique using double entry 
book-keeping was introduced. A system to 
ensure that financial information was 
recorded efficiently and accurately.
Page 3


LECTURE 1: 
INTRODUCTION
History and development of 
accounting record
Ancient accounting record:
Using system called “stewardship”. The 
document facilitate the owner to control 
and identify their asset, which is under the 
custody of the steward
Renaissance in Italy:
Accounting technique using double entry 
book-keeping was introduced. A system to 
ensure that financial information was 
recorded efficiently and accurately.
Industrial Age:
In 19
th
century the emergence of large 
corporations, separation of the owners 
from the managers, makes the businesses 
reports became more complex. Needs to 
prepare financial statements to the 
shareholders.
Post Industrial Age:
Accounting is a need for decision making 
– information element.
Page 4


LECTURE 1: 
INTRODUCTION
History and development of 
accounting record
Ancient accounting record:
Using system called “stewardship”. The 
document facilitate the owner to control 
and identify their asset, which is under the 
custody of the steward
Renaissance in Italy:
Accounting technique using double entry 
book-keeping was introduced. A system to 
ensure that financial information was 
recorded efficiently and accurately.
Industrial Age:
In 19
th
century the emergence of large 
corporations, separation of the owners 
from the managers, makes the businesses 
reports became more complex. Needs to 
prepare financial statements to the 
shareholders.
Post Industrial Age:
Accounting is a need for decision making 
– information element.
What is accounting?
Accounting is an information system 
that provides quantitative, financial 
information  to stakeholders about the 
economic activities and condition of a 
business so that they can make 
business/economic
decisions.
Page 5


LECTURE 1: 
INTRODUCTION
History and development of 
accounting record
Ancient accounting record:
Using system called “stewardship”. The 
document facilitate the owner to control 
and identify their asset, which is under the 
custody of the steward
Renaissance in Italy:
Accounting technique using double entry 
book-keeping was introduced. A system to 
ensure that financial information was 
recorded efficiently and accurately.
Industrial Age:
In 19
th
century the emergence of large 
corporations, separation of the owners 
from the managers, makes the businesses 
reports became more complex. Needs to 
prepare financial statements to the 
shareholders.
Post Industrial Age:
Accounting is a need for decision making 
– information element.
What is accounting?
Accounting is an information system 
that provides quantitative, financial 
information  to stakeholders about the 
economic activities and condition of a 
business so that they can make 
business/economic
decisions.
The different between accounting and 
bookkeeping:
Accounting:
“a process of identifying, 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” (AICPA, 1961)
Bookkeeping:
“ only involves activities of collecting and recording 
financial data”