Financial Accounting for Managers, 2/e, 2nd Edition

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Introduction to Accounting

CHAPTER OBJECTIVES

This chapter will help the readers to:

1. Understand the meaning and nature of accounting.
2. Differentiate between financial accounting and management accounting.
3. Identify various users of accounting information.
4. Appreciate the need for generally accepted accounting principles (GAAP) and accounting standards (AS).
5. Understand the accounting environment and role of various regulatory institutions on accounting.
6. Get an overview of accounting cycle.
7. Identify the three basic financial statements.

1.1  WHAT IS ACCOUNTING?

Accounting is the language of business; it is the medium through which business organizations communicate their financial performance and financial position to the outside world. Financial ...