Question

3. Complete the following statements: Accounting is not just a lot of: Accounting is not just for: Accounting requires: Accounting requires: Accounting is the language of: Who needs to understand accounting? The first function of finacial accounting is: The second function of financial accounting is:

Answer 1

Answer 3. C1) Accounting Is not just a lot of nymbers Accounting is simply a art of record keeping. Every transaction event he ppen s, have some 'special meaning. In business, while a the accountants is not got thiouyh nymbevs , be specially has qttention of how such event recognized the entry rathev numbers. Accounting and not a numbers. or recorded though just a lot of transaction 2) Accounting is not just fov Calalation. In Accounting, Accountants gre engaged in the recording cvent. It is not a mathematics, where the diffeventiation, Integrg- tjon, theorems, theary, etc. Accounting is only follous equation which is := Capital + Ligbilities. Asseti 9 Accounting requives _analytical skills, open mind , self canfilance . Every Accountnt shoull hque anglytical skills, open minded and self confilence. Anglyticıl skills helps in undeustanding the event and entry through which transąchion recalel. self Confidence helps 90 im portant pesongl stills wheve the accountint gety the confidence qbout what he is doing har some logic. Open mind helps to vnlerstan! the event and sitvotion 4) Accounting regures knowlelge, formal elucqtion . Accountants qre working sonxtimes in pesaure of tine. Such pressure will removed if proper knouledge talken and for mal elucetjan provided. knouledge helps to overjde sOgeone if he went wrong. Sych like every pvofessjon , Accoun tyqt qlso iequines the fovimy education to get in business corpovgle word. Accounting is the langvage of_BusioeTs The evolytian and growth of accounting is clasely qsocipled with the tevelopment of busineis w. To untu stynd accoupling it is best identificed by the recorling of trangchion and comnyoietin of fingocial intorm gtion The gim of acounting is commynintjon of figgncial information to the decisjon makers thus, accountiny is called qs 19nguage of bysiness.

deeds to ynderstynd Accoyntiny 7= Eve-g vssers of Fingnciql Information needs to undevstand Acranting cainting is language of business. Evevy business event Js recorded ig súch books of pccoynt. From such books of account fingncigl stattments are prepavel. Usevs of such figncia) stytemeats analyse, intrupret such tigancial informgtjon. For Anglysis they have sound k gowlelge of qccoynting. Usevs 1ndlyle iguesboug, employees, lenders, suppliers god orevjbovs , public , deciston Myleeur, etc. ustomers, goverment , ") The first function öf fingnc accounting 15 to genevqte the fimaciel statements and relqted sisclovres dnd systamgtj: recordjng of traniqct»ps. Fingncia! Acceuntng iis manly generally qosoued with the peparation fingncigl stytement and communciationf sych Hingncial information to the useus, Fingncial Accounong vecords and share such fingnciyl in formatij•g to the yoer of qccoyn ting for analysis and ytrepretytion. Such reqyves systmtie vecovding of by osaction the transaction (?) The second fygctjon of Finmocial Accounting is :Anglysng, Summarising INd inter pretation of financial informgtion. Financial Acoynting after recondjng systematic way, the derisjon mgkeas will anglyse the whde transyclj.n gnd symmane 99! then int-put the fiAncigl informatiog by the ysers of fingockl informatjon. It helps in solven cy to the prblic.