Grade 12 Accounting - BAT4
What is Accounting?
• It is a power tool
• It is one of the major keys to success
• It is the heart of the business
• It feeds decision makers
Power of Accounting
It provides Accounting is an the
economic activity information system information
of a business must be…
The Objectives of Accounting
• Helps people better asses opportunities,
product, investments and social &
• It reports on the performance of a
business, what the business owns, owes
and opens eyes for new possibilities
• (See Did you Know pg 5).
What is difference between
recordkeeping & accounting?
• Recording/bookkeeping is the recording of
financial transactions and events, either
manually or electronically, for the purpose of
creating a reliable bank of data.
• Accounting is much more than recordkeeping.
• Examples of recordkeeping are credit approvals,
chequing accounts, tax forms and payroll.
Accounting involves :
• Designing information systems
• Monitor & control the organization’s
• Understand & interpret accounting
Forms of Business
• Sole Proprietorship – one owner, unlimited
• Partnership – 2 types: limited & unlimited
• Corporation – ownership divided into
• Non Business (non profit) – charitable &
Users of Accounting Information
External Users: Internal Users:
• Shareholders • Employees of the
• Lenders organization such as:
– Internal accounting Dept
– Marketing Dept
– HR Dept
• Suppliers – Purchasing Dept
• Regulators – R & D Dept
• Lawyers – Production Dept
– Distribution Dept
– Servicing Dept
• The Press
Ethics & Social Responsibility
Ethics are beliefs that differentiate right
from wrong. There are actions that are not
unlawful but unethical such as withholding
Accounting systems depends on relevant
and reliable information. For this
information to be useful, it must be trusted.
Accountants & Ethics
Ethical expectations of Accountants are:
• Maintain a high level of professional competence
• Treat sensitive information as confidential
• Exercise personal integrity
• Be objective in matters of financial disclosure
(See “Did You Know” pg 13)
Accountants & Ethics Cont’d
Due to the importance of accounting
ethics, professional accountants are
guided by a code of ethics handbook.
These codes are helpful when one faces
an ethical dilemma.
This where we examine how our
behaviour impacts on the society. A
socially responsible organization would:
• Identify Issues
• Analyze Options
• Make socially responsible decisions, e.g. TD Bank
and the water front clean up day during spring
Accounting & Technology
Like all other professions, the use of
technology is impacting accounting.
Accountants are expected to be able to
use the various technological tools
available to get their jobs done effectively
and efficiently. Information is required
quickly and one must be able to provide
this on a timely basis.
Accountants work in the following broad
(see pg. 16)