Accounting
Master of Business Administration- MBA Semester 1
MB0041 – Financial and Management Accounting
Q1. Accounting is one of the oldest, structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting? ANS. Meaning of Accounting- The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company's operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period.American Institute of Certified Public Accountants (AICPA) which definesAccounting as “the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a Financial character and interpreting the results thereof”.Meaning of Book keeping- Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping. Thus, book- keeping many be defined as the science and art of recording transactions in money or money’s worth so accurately and systematically, in a certain set of books.“Book- keeping is the art of recording business transactions in a systematic Manner”. A.H.Rosenkamph.“Book- keeping is the science and art of correctly recording in books ofAccount all those business transactions that result in the transfer of money or money’s worth”.Objective of Accounting-Objective of accounting may differ from business to business depending upon Their specific requirements. However, the following are the general objectives of accounting.i) To keeping systematic record: It is very difficult to remember all theBusiness transactions that take place.
MB0041 – Financial and Management Accounting
Q1. Accounting is one of the oldest, structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting? ANS. Meaning of Accounting- The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company's operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period.American Institute of Certified Public Accountants (AICPA) which definesAccounting as “the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a Financial character and interpreting the results thereof”.Meaning of Book keeping- Book- keeping includes recording of journal, posting in ledgers and balancing of accounts. All the records before the preparation of trail balance is the whole subject matter of book- keeping. Thus, book- keeping many be defined as the science and art of recording transactions in money or money’s worth so accurately and systematically, in a certain set of books.“Book- keeping is the art of recording business transactions in a systematic Manner”. A.H.Rosenkamph.“Book- keeping is the science and art of correctly recording in books ofAccount all those business transactions that result in the transfer of money or money’s worth”.Objective of Accounting-Objective of accounting may differ from business to business depending upon Their specific requirements. However, the following are the general objectives of accounting.i) To keeping systematic record: It is very difficult to remember all theBusiness transactions that take place.