Scribd
Upload
20 views

Finance & Accounting (PHM1005)

This document provides an overview of finance and accounting topics including: 1. Definitions of accounting, financial accounting, management accounting, and financial management. It also outlines the uses and purpose of accounting. 2. Explanations of the differences between financial accounting which produces statements for external users, and management accounting which provides information for internal users to aid in planning, organizing, and controlling. 3. Identification of the key products of financial accounting as the profit and loss account, balance sheet, and cash flow statement which communicate the economic activities and financial position of an organization.

Uploaded by

botohan
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
20 views

Finance & Accounting (PHM1005)

This document provides an overview of finance and accounting topics including: 1. Definitions of accounting, financial accounting, management accounting, and financial management. It also outlines the uses and purpose of accounting. 2. Explanations of the differences between financial accounting which produces statements for external users, and management accounting which provides information for internal users to aid in planning, organizing, and controlling. 3. Identification of the key products of financial accounting as the profit and loss account, balance sheet, and cash flow statement which communicate the economic activities and financial position of an organization.

Uploaded by

botohan
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
You are on page 1/ 15

FINANCE &

ACCOUNTING
(PHM1005)
BIBI AKHTAR BT AYUB
[email protected]
010-9312579

LEARNING OBJECTIVES
Definition

of accounting, financial accounting,


management accounting & financial
management

Outline

the uses and purpose of accounting and


the practice of accountancy

Explain

the nature and purpose of financial


statements

Identify

the wide range of users of financial


information

DEFINITION
ACCOUNTING is a process of:
1. Identifying economic activity relevant to
a particular organization
2.

Recording those events (also classifying


& summarizing)

3. Communicating those info by preparing


& distribution of accounting report.

The three questions


generally answered by
accounting:

how are we doing, and are we doing


well or badly?
which problems should be looked
at?
which is the best alternative for
doing a job?

BRANCHES OF ACCOUNTING

DEFINITION
FINANCIAL

ACCOUNTING

The process of producing financial


statements for external users such as
shareholders, creditors and
governmental authorities

DEFINITION

MANAGEMENT ACCOUNTING
A field of accounting that provides
economic and financial information for
managers and other internal users.

Performs 3 functions:
1.
Planning
2.
Organizing & directing
3.
Controlling

Financial Accounting vs Management


Accounting
FINANCIAL

ACCOUNTING
- External Users
- Financial statements
- To provide general-purpose
information for all users
- Verification by independent audit
by
certified public accountant

Financial Accounting vs Management


Accounting
MANAGEMENT

ACCOUNTING
- Internal users officers, managers
etc
- Internal reports
- To provide special-purpose
information
for a particular user
for a specific
decision
- No independent audit

DEFINITION
FINANCE

- A discipline concerned with


determining
value and making
decisions.

FINANCIAL

MANAGEMENT

- An area of finance that focuses on how an


organization can create and maintain value.

Features
Features Of
Of Useful
Useful
Financial
Financial
Information
Information

Accounting
Accounting Concepts
Concepts

Users
Users Of
Of Financial
Financial
And
And Accounting
Accounting
Information
Information

PRODUCT OF FINANCIAL
ACCOUNTING
FINANCIAL
STATEMENTS

FINANCIAL STATEMENTS
Profit

and loss account

Balance
Cash

sheet

flow statement

You might also like