Account lesson: Introduction to Accounting(I) - what students should learn

Source

Hello campus friends,

It indeed has been a while I visited and I must apologize for that.
I want through the activities of this great community, and I must say, I am impressed at the zeal of students in this community.

You have always been as hard-working as ever, and I want to use this opportunity to appreciate the moderators for their tireless efforts.

As a Nigerian student, I know the current situation of the educational system, the halt on educational activities because of the the misunderstanding between Asuu and the federal government.

And it also came to my notice that many students have began utilizing this strike period by learning a lucrative skill.

I also noticed that due to the daily activities, many students have been unable to read their books, and I know that once this strike is over, the students will be rushed into examination.

That being the case, I have decided to make academic related post that student can learn from, and they can also use this medium to refresh their memory.

That being the case, join me, as we shall be learning on the introduction to Accounting and book-keeping.

MEANING OF ACCOUNTING AND BOOKKEEPING

Accounting can be explained to be the process of selecting, interpreting, measuring, recording and communicating the financial data of an organization, which thus assist users in decision making.
It also includes the measurement and recording of the profit and loss of an organization.

Record keeping alone should not be the only interest of an accountant, he must also be able to apply his professional competency, skill, or knowledge in tendering accounting information to the management.

Book keeping on the other hand can be explained as a systematic recording of financial transactions on a regular basis in the suitable books. It happens to be an integral part of accounting.

IMPORTANCE OF ACCOUNTING AND BOOKKEEPING

• It helps to create a long-lasting records for all transactions
• Information from accounting can be used for making decisions
• It helps to eradicate fraudulent practices
• Its record are useful for tax assessment
• Accounting information helps to show income and expenses of an organization
• It also help to show an organization assets and liabilities.

DIFFERENCES BETWEEN ACCOUNTING AND BOOKKEEPING

ACCOUNTING	BOOK-KEEPING
It is the foundation for business language	It is the foundation of accounting
Its users are known as Accountant	It's users are called book-keepers
It is known as a summarizing phase	It is a recording phase
It requires special skills and knowledge	It doesn't require special skill.
It can be made from accounting records	it cannot be prepared from records
It helps a lot in decision making	it doesn't affect decision making of a firm.

USERS OF ACCOUNTING INFORMATION

There are numerous individuals that makes use of accounting information, and some of them are :

• MANAGEMENT:

The management are the set of individuals who manage the affairs of a business on behalf of the owners.

In a limited liability company, they are known as the board of directors and they need the information from accounting to ascertain the level of efficiency of their formulated policy, which will thus help them make needed changes.

• EMPLOYEES:

These are workers in a company and they need accounting information to decern how secure their job is and how capable the company is to pay good salaries

• GOVERNMENT:

The makes use of accounting information to ascertain the rate of growth and development of the national economy.

• POLITICIANS:

Politicians makes use of accounting information to present manifestos with the aim of winning an election.

There are other set of individuals that makes use of accounting information, people like:

• Tax authority
• Analyst
• Banks
• Competitors.

This will be all on out lesson for today, I you enjoyed learning the basis of accounting.
Thanks for reading!

Cc
@whitestallion
@campusconnectng