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ACCOUNTING:-
Accounting is an information system that identifies, measures, records and communicate the economic events of an organization to interested users for decision making. CHARACTERSTICS OF ACCOUNTING :-. 

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ACCOUNTING:-
Accounting is an information system that identifies, measures, records and communicate the economic events of an organization to interested users for decision making.

CHARACTERSTICS OF ACCOUNTING :-

1.Identification of Financial Transactions and events :- It records only those transactions and events which can be measured in terms of money. For ex-purchase of raw material or sale of finished goods by a firm  and so on. 2.Measuring the identified Transactions:-It can measures transactions and events in monetary terms such as dollars ,rupees, pound. 3.Recording:- It is the systematic chronological process of capturing business’s financial data –sales, purchases, expenses. 4.Classifying:-The  systematic process of grouping financial recorded financial transactions into distinct categories-assets, liabilities, equity, revenue within a ledger 5.Summarising:- It involves presenting the classified data in a manner which is understandable and useful for internal and external users . Although it transforms raw data into key reports-balance sheets ,income statements and cash flow statements which used to manage profitability, cash flow and ensure compliance with standards like GAAP.

6.Analysis and Interpretation:- Evaluating financial data to determine strength, weakness and performance.
7.Communicating:-It involves communicating, interpreting and presenting complex financial data into actionable insights for stakeholders ,including clients,management and investors.. 

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6.Analysis and Interpretation:- Evaluating financial data to determine strength, weakness and performance.
7.Communicating:-It involves communicating, interpreting and presenting complex financial data into actionable insights for stakeholders ,including clients,management and investors.

Identification of Financial transactions& Events.

OBJECTIVES OF ACCOUNTING:-
1.To maintain proper records of business transactions according to specified rules which helps them to minimize the chance of omission and fraud. 2.To ascertain the financial position of business by means of financial statement
i.e. Balance sheet. 3. To ascertain the progress of business from year to year and to detect errors and frauds. 4.To provide accounting information to various interested parties like owners, creditors, banks, employees etc. who perform in depth and analysis as per the requirement of the stakeholders.. 

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OBJECTIVES OF ACCOUNTING:-
1.To maintain proper records of business transactions according to specified rules which helps them to minimize the chance of omission and fraud.

2.To ascertain the financial position of business by means of financial statement
i.e. Balance sheet.

3. To ascertain the progress of business from year to year and to detect errors and frauds.

4.To provide accounting information to various interested parties like owners, creditors, banks, employees etc. who perform in depth and analysis as per the requirement of the stakeholders.

ADVANTAGES OF ACCOUNTING:-. 1.Accounting provides permanent records for all business transactions and provides reliable information to various parties. 2.Accounting provides the profit and loss of a business for a given period of time. 3.Accounting provides the facility of comparative study of the various aspects of Business like profit sales, purchases etc .With that of previous years and helps businessmen to make decisions. 4.Accounting forms a basis in the process of performance evaluation to improve the performance of employees, divisions, activities etc. 5.Accounting records act as an approved evidence in legal matters . .. 

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1.Accounting provides permanent records for all business transactions and provides reliable information to various parties.
 2.Accounting provides the profit and loss of a business for a given period of time.
 3.Accounting provides the facility of comparative study  of the various aspects of Business like profit sales, purchases etc .With that of previous years and helps businessmen to make decisions.
 4.Accounting forms a basis in the process of performance evaluation to improve the performance of employees, divisions, activities etc.
 5.Accounting records act as an approved evidence in legal matters . .

LIMITATIONS OF ACCOUNTING:-
1.It considers only monetary transactions. Non monetary aspects like quality , honesty, skills are ignored in accounting. 2.It considers only historical transactions and the figures give in the financial statement do not consider price level changes. 3. It is affected by window dressing which means manipulation of accounts so that financial statements describe a more favourable position than the actual position. 4.Financial accounts are unsuitable for forecasting because they are not only records of past events. 5. It is not free from personal bias which affects its credibility.. 

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LIMITATIONS OF ACCOUNTING:-
1.It  considers only monetary transactions. Non monetary aspects like quality , honesty, skills are ignored in accounting.

2.It considers only historical transactions and the figures give in the financial statement do not consider price level changes.

3. It is affected by window dressing which means manipulation of accounts so that financial statements describe a more favourable position than the actual position.

4.Financial accounts are unsuitable for forecasting because they are not only records of past events.


5. It is not free from personal bias which affects its credibility.

BOOK-KEEPING BASE OF ACCOUNTING
It is an art of recording the transactions in the books of accounts. only those transactions which bear a monetary value are recorded. It is the first step of accounting. DIFFERENCES BETWEEN THE TWO ARE AS FOLLOWS:-. 

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BOOK-KEEPING BASE OF ACCOUNTING
It is an art of recording the  transactions in the books of accounts. only those transactions which bear  a monetary value are recorded. It is the first step of accounting.

DIFFERENCES BETWEEN THE TWO ARE AS FOLLOWS:-

It is concerned only with recording of monetary transactions. It’s a primary stage . To maintain systematic records of business. Routine and clerical in nature. It is done by junior level staff.

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It includes classifying, summarizing, analysing and also communicating the results to users. It’s a secondary stage. To calculate the net profit and net loss in the business. Analytical in nature. It is done by senior level staff.

QUALITATIVE CHARACTERSTICS OF ACCOUNTINGINFORMATION:-. 

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QUALITATIVE CHARACTERSTICS OF ACCOUNTINGINFORMATION:-

Reliability:- It implies that information must be factual and verifiable. And free from errors.

Relevance:- It must be relevant to the objectives of enterprise. To be relevant information must help the users of accounting information in making decisions.

SUB FILEDS OF ACCOUNTING:-. Financial Accounting. 

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1.Financial Accounting
 2.Cost Accounting
 3. Management Accounting
 4.Tax Accounting

1.Financial Accounting:- The main purpose of this branch is to record the business transactions in a systematic manner to ascertain the profit or loss and to present the financial position of the business with help of a balance sheet.

2.Cost Accounting:- The main purpose of cost accounting is to ascertain the total cost and per unit cost of goods produced and services rendered by business.

3. Management Accounting:- The main purpose of this branch is to present the accounting information in such a way to assist the management in planning and controlling the operations of business.

4.Tax Accounting:- This branch is used for tax purposes . Income tax and GST are computed on the  basis of this accounting.

Understandibility:- It should be presented in such a manner that they are understood easily by their users such as employees, investors etc.. 

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Understandibility:- It should be presented in such a manner that they are understood easily by their users such as employees, investors etc.

Comparability:- It is very useful quality of financial statements should contain previous year data so that it can be compared with current year so that current performance be compared with  past performance.

INTRODUCTION TO ACCOUNTING

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