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Any five users of accounting information?
Here are the five users of Accounting 1.shareholders of a company 2.Government 3.Suppliers/ Creditors 4.General public 5.Employees
What is an accounting cycle and how does it help in the accounting process?
ACCOUNTING CYCLE : An accounting cycle is a complete sequence beginning with the recording of the transactions and ending with the preparation of the final accounts.The sequential steps involved in an accounting cycle are as follows : 1.jounalizing,2.posting,3.balancing.4.trail balance,5.income statement(trading & profit & loss account to ascertain the profit or loss for the accounting period),6.position statement(balance sheet) ACCOUNTING PROCESS IS ALSO CALLED ACCOUNTING CYCLE. ACCOUNTING PROCESS : It consists of the following stages/helps : 1.recording of entries for all business transactions in journal. 2.posting of entries into ledger. 3.balancing of accounts. 4.preparing of trail balance with the help of different accounts to know the arithmetical accuracy. 5.preparing final accounts with the the help of trial balance.----trading & profit and loss account to know the profit or loss.-----balance sheet to know the financial position (of a company for year end or a period)
What are the 5 accounting cycles?
An accounting cycle begins when accounting personnel create a transaction from a source document and ends with the completion of the financial reports and closing of temporary accounts in preparation for a new cycle. The five accounting cycles and their main steps are shown below: a. Revenue cycle 1) Sales orders 3) Cash receipts b. Expenditure cycle (Note: This cycle focuses on two separate resources; inventory and human resources and is often considered two separate cycles; purchasing and payroll/HR. ) 1) Inventory/purchasing 2) Accounts payable 3) Payroll 4) Cash payments c. Conversion cycle (Production cycle) 1) Production 2) Cost accounting d. Financing (Capital Acquisition and repayment) 1) Borrowing/repayment 2) Issuing stock 3) Dividends 4) Cash management e. Fixed assets 1) Asset acquisition 2) Depreciation 3) Disposal
What are the subfields of accounting?
1. Financial Accounting 2. Cost Accounting 3. Management Accounting 4. Social Accounting 5. Human Resource Accounting 6. National Accounting
Differentiate cost accounting system from financial accounting system?
Q.5 Differentiate Financial Accounting and Management accounting
