Management Accounting And Financial Accounting

Introduction To ACCOUNTING

Accounting/Accountancy is the determination , progress and contact of financial fact about

economic system.The latest field was well established by the Italian arithmetician Luca Pacioli, in

1494.Accountancy, which has been called; the language of business,determining the results of an

cooperative economic events and conduct this fact to a different kind of users including investors,

creditors, management, and regulators.

Professional of accounting are known as "accountant''. The terms accounting and financial reporting

are often used as synonyms.

Accounting can be split into several fields including:"financial accounting,management accounting,

auditing, and tax accounting".Accounting fact systems

In "management accountings" internal determine and reports are on the cost of benefit analyses and

are not compulsory to follow the "GAAP".In the year of 2014 CIMA invented the "Global

Management Accounting Principles/GMAP".

The result of research from over 20 countries around 5 continents, the principles goal is to guide the

best practice in discipline.

Management accounting predeceases future oriented reports for example: the expense for the year

of 2006 is prepared in the year of 2005 and the time duration of reports widely.

This reports may have both financial and non-financial fact, and for example:focus on some

products and management.

Auditing

Auditing is the checking of assertions create by others on a payoff and in the context of accounting

it is the un-biased exam and evaluation of the financial statements of an cooperative.

An audit of financial statements goal to expend or dis-claim an idea on the financial statements. The

auditor explain an idea on the fairness with which the financial statements submit the

Accounting cycle

The collective process of recording and processing of the accounting events of a company. The

steps begin only when a transaction occurs and end with its inclusion only in the financial

statements. The nine steps of the accounting cycle are:

" Analysing data from invoice and events","Putting transactions into the general journal","Posting

entries to the general ledger","Preparing an unadjusted trial balance","Adjusting entries

appropriately","Preparing an adjusted trial balance","Organising the accounts into the financial

statements","Closing the books",and"Preparing a post-closing trial balance to check the accounts"

Accounts for double entry

Each account should be shown on a separate page.the double entry system divides each page into

two halves.the left hand side of each page is called the debit side,while the right side is called credit

side.the titles of each account is written across the top of the account at the centre . Note that the the

word debit is often shown in a short form as Dr,while credit is often shown as Cr.

Example

Dr Title of accounts written here