Solved Paper
Q1. Accounting is one of the oldest, structured management information system.
Give the meaning of accounting and book keeping? Explain the objectives of accounting?
A1. Accounting : Accounting is the analysis and interpretation of book-keeping records. It includes not only the maintenance of accounting records but also the preparation of financial and economic information which involves the measurement of transactions and other events relating to the entity.
Accounting is defined as "the art of recording, classifying and summarizing in terms of money transactions and events of financial character and interpreting the results thereof."
"Accounting is a means of collecting, summarizing, analyzing and reporting in monetary terms, information about the business."
Meaning of book keeping: Book Keeping is the task of recording, classifying and summarising (upto trail balance) of financial transactions and events. It is a part of accounting or can be called as the fundamental pillars of accounting. Since in earlier days, these financial transactions and events were written in the logn Bahi Books, registers, copies hence these were known as book keeping.
Now the form of keeping is getting changed by the advent of technology and these transactions and events are recorded and procesed through computers but still the subtance remain the same and so about the key word "Book Keeping."
OBJECTIVES:
To keep systematic records: Accounting is done to keep a systematic record of financial transactions. In the absence of accounting there would have been terrific burden on human memory which in most cases would have been impossible to bear.
To protect business properties: Accounting provides protection to business properties from unjustified and unwarranted us. This is possible on account of accounting supplying the information to the manager or the proprietor.
To ascertain the operational profit or loss: Accounting helps is ascertaining the net profit earned or loss
Give the meaning of accounting and book keeping? Explain the objectives of accounting?
A1. Accounting : Accounting is the analysis and interpretation of book-keeping records. It includes not only the maintenance of accounting records but also the preparation of financial and economic information which involves the measurement of transactions and other events relating to the entity.
Accounting is defined as "the art of recording, classifying and summarizing in terms of money transactions and events of financial character and interpreting the results thereof."
"Accounting is a means of collecting, summarizing, analyzing and reporting in monetary terms, information about the business."
Meaning of book keeping: Book Keeping is the task of recording, classifying and summarising (upto trail balance) of financial transactions and events. It is a part of accounting or can be called as the fundamental pillars of accounting. Since in earlier days, these financial transactions and events were written in the logn Bahi Books, registers, copies hence these were known as book keeping.
Now the form of keeping is getting changed by the advent of technology and these transactions and events are recorded and procesed through computers but still the subtance remain the same and so about the key word "Book Keeping."
OBJECTIVES:
To keep systematic records: Accounting is done to keep a systematic record of financial transactions. In the absence of accounting there would have been terrific burden on human memory which in most cases would have been impossible to bear.
To protect business properties: Accounting provides protection to business properties from unjustified and unwarranted us. This is possible on account of accounting supplying the information to the manager or the proprietor.
To ascertain the operational profit or loss: Accounting helps is ascertaining the net profit earned or loss