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what is accounting?

1)-It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and
communicating financial information. It reveals profit or loss for a given period, and the value and nature of a
firm's assets, liabilities and owners' equity.
2)-Accounting is instrumental within organizations as means of determining financial stability. Accountants are responsible for determining an
organizations overall wealth, profitability, and liquidity. Without accounting, organizations would have no basis or foundation upon which daily
and long-term decisions could be made. The budgets for marketing activities, profit reinvestment, research and development, and company
growth all stem from the work of accountants 3).-Accounting is the recording of financial transactions plus storing, sorting, retrieving,
summarizing, and presenting the information in various reports and analyses. Accounting is also a profession consisting of individuals having
the formal education to carry out these tasks.

the importance of accounting in your profession?


-A true professional accountant must meet the following basic requirements: integrity, objectivity, professional
competence, confidentiality, professional behavior, respect to technical and professional standards. Integrity expresses
conceptually the professional accountants obligation to behave with honesty and fairness in professional and business
relationships. Any company is seeking an accountant as, sincere and honest, which means the operation of fair dealing and
fair protection aginst misinformation, omissions or misleading information.
Accounting process enumerate.
1.

Identify the transaction or other recognizable event.

2.

Prepare the transaction's source document such as a purchase order or invoice.

3.

Analyze and classify the transaction. This step involves quantifying the transaction in monetary terms (e.g.
dollars and cent )

4.

Prepare the trial balance to make sure that debits equal credits. The trial balance is a listing of all of the ledger
accounts, with debits in the left column and credits in the right column. At this point no adjusting entries have
been made.

5.

Correct any discrepancies in the trial balance. If the columns are not in balance, look for math errors, posting
errors, and recording errors. Posting errors include:
o

posting of the wrong amount,

omitting a posting,

posting in the wrong column, or

posting more than once.

6.

Prepare adjusting entries to record accrued, deferred, and estimated amounts.

7.

Post adjusting entries to the ledger accounts.

8.

Prepare the adjusted trial balance. This step is similar to the preparation of the unadjusted trial balance, but this
time the adjusting entries are included. Correct any errors that may be found

9.

Prepare closing journal entries that close temporary accounts such as revenues, expenses, gains, and losses.
These accounts are closed to a temporary income summary account, from which the balance is transferred to the
retained earnings account (capitalPrepare the after-closing trial balance to make sure that debits equal credits. At
this point, only the permanent accounts appear since the temporary ones have been closed.

10.

Prepare reversing journal entries (optional). Reversing journal entries often are used when there has been an
accrual or deferral that was recorded as an adjusting entry on the last day of the accounting period.

Enumerate and explain the users of financial statement at least 7.

1.

Suppliers and trade creditors are interested in information that will help them determine whether the amounts owing to them will be paid
on time.

2.

Lenders want information that will enable them to decide whether their loans will be paid when due, and whether or not to issue new
loans to the entity.

3.

Investors who supply risk capital in the form of funding, this group are concerned with the risk inherent in, and the return provided by
their investments

4.

Customers will be interested in the continuance of the entity, especially if they depend on it themselves.

5.

Employees wish to know about the stability and profitability of their employers. This may give them confidence about their jobs and
could be used to discuss salary and conditions of employment.

6.

The Government and government agencies are interested in the allocation of resources and the activities of the entities in general.

7.

The General public may be affected by an entity in a number of different ways, especially how an entity may contribute to the local
economy.

Differentiate accounting to book keeping.

-Bookkeeping and accounting are both relevant tool in communicating the financial activity, performance and condition of a
business entity.

The important role of bookkeeping and accounting in every business has increased the demand for bookkeeping and
accounting job or services worldwide. Because of the high demand, it made bookkeeping and accounting as two of the
most profitable and rewarding profession in the world.

If you want to enter this lucrative profession and opportunity, it is a good choice to learn and understand the concept,
principles and procedures of both bookkeeping and accounting.

In this article, you will pick up valuable learning on the distinct definition of bookkeeping and accounting, and the
difference between them. You will understand the function and process of both bookkeeping and accounting, what
separates bookkeeping from accounting, and when bookkeeping or accounting procedures is used