difference between fayol and taylor

Subject: Financial Accounting-I
Course Code: BBA-104
Lesson: 1

Author: Dr. Chandra Shekhar
Vetter:

INTRODUCTION TO ACCOUNTING
STRUCTURE
1.0

Objectives

1.1

Introduction

1.2

Development of accounting discipline

1.3

An accountant s job profile: functions of accounting

1.4

Utility of accounting

1.5

Types of accounting
1.5.1 Financial accounting
1.5.2 Management accounting
1.5.3 Cost accounting
1.5.4 Distinction

between

financial

and

management

accounting
1.6
1.7

Keywords

1.8

Self assessment questions

1.9

1.0

Summary

References/suggested readings

OBJECTIVES
After going through this lesson, you will be able to·

Understand the meaning and nature of accounting.

·

Differentiate between various types of accounting.

·

Know development of accounting principle.

·

Explain the importance of accounting.

1.1

INTRODUCTION
Accounting is a system meant for measuring business activities,

processing of information into reports and making the findings available to decision-makers. The documents, which communicate these findings about the performance of an organisation in monetary terms, are called financial statements.
Usually, accounting is understood as the Language of Business.
However, a business may have a lot of aspects which may not be of financial nature. As such, a better way to understand accounting could be to call it The Language of Financial Decisions. The better the understanding of the language, the better is the management of financial aspects of living. Many aspects of our lives are based on accounting, personal financial planning, investments, income-tax, loans, etc. We have different roles to perform in life-the role of a student, of a family head, of a manager, of an investor, etc. The knowledge of accounting is an added advantage in performing different roles. However, we shall limit our scope of discussion to a business organisation