FABM Q1

Introduction to Accounting

Accounting

• Art of recording, classifying, & summarizing transactions and events and interpreting the results (in terms of money)

• Service activity

• Quantitative information, financial in nature, economic entities, helps in making economic decisions

• Reveals profit or loss

Bookkeeping

• Recording of the business transactions on a daily basis

• Financial data should be accurate and up to date

Public accounting

• Provides consulting services, personal financial planning services, preparation of tax matters for a fee

Branches of public accounting

• External auditing

• Tax preparation and planning service

• Management advisory service