Bangladesh
Learning Materials
← Definition of Accounting
← Types of Business Entity
← Users of Accounting Data and Its’ Role
Accounting
“Accounting is the process of identifying (recording), measuring (processing) and communicating (presenting) financial information about an entity to permit informed judgments and decisions by users of information.”
Branches of Accounting
- Financial Accounting
- Management Accounting
- Cost Accounting
- Financial management
- Auditing
- Taxation
Financial Accounting
❖ External Purpose
❖ Summarized
❖ Financial statements are published yearly/semi-annually/quarterly
❖ Past orientation
❖ Mandatory through accounting Profession
❖ Satisfy information needs of external users
Users of Accounting Information
All the stakeholders of the company use the accounting data and financial information. The users are divided into two types –
a) Internal Users
b) External Users
Role of Accounting Information
Internal Users
Management & Employees
Mgt. needs to know current financial status, background and future prospects for -
- Planning
- Operating
- Controlling
- Evaluating and Measuring Performance
External Users
Shareholders, Investors, Government Bodies (both statutory and public bodies), Creditors, Suppliers, Competitors etc.
They use financial statements to get their required information.
Basic Financial Statements
Balance Sheet, P & L Account, Cash-flow Statement (& Statement of Changes in Equity)
Type of Business
❖ Service Business
❖ Merchandising (Trading)
❖ Manufacturing...
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