ACCOUNTING What is Accounting? Definition of Accounting Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and events relating to the finances so that it can be used by people who use it easily understandable to a decision-making and other purposes. Accounting comes from foreign accounting, which means when translated into Indonesian is count or account. Accounting is used in almost all business activities around the world to make a decision that is referred to as the language of business. Accounting functions The main functions of accounting are as an organization's financial information. Of the accounting statements we can see the financial position and its organizational sutu changes occurring in it. Accounting is made qualitatively by a unit of measure of money. Financial information is needed especially by the manager / management to help make decisions of an organization. Basis of Accounting Reports Basically the accounting process will make the output of the income statement, statement of changes in capital and balance sheet reports a company or other organization. On an accounting report must include company name, report name, and date of preparation or time period of the report to facilitate other people understand it. Reports can be periodic and there is also a one time only. Accounting practitioners are known as accountants. Certified accountants have a certain degree different in each country. An example is a Chartered Accountant (FCA, CA or ACA), Chartered Certified Accountant (ACCA or FCCA), Management Accountant (ACMA, FCMA or AICWA), Certified Public Accountant (CPA) and Certified General Accountant (CGA). In Indonesia, a certified public accountant CPA called Indonesia (previously: BAP or Certified Public Accountant). Accounting is the measurement, translation, or provision of assurance about information that will help managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and government agencies. Accounting is the art of measuring, communicating and interpreting financial activity. Broadly, accounting is also known as the "language of business". Accounting aims to prepare an accurate financial statements to be used by managers, policy makers, and other interested parties such as shareholders, creditors, or owners. Daily record keeping involved in this process is known as bookkeeping. Financial accounting is one branch of accounting in which financial information on a business is recorded, classified, summarized, interpreted, and communicated. Auditing, a related discipline but remain separate from the accounting, is a process where an independent inspector to check the financial statements of an organization to provide an opinion or opinions - which makes sense but not guaranteed to be completely - about the fairness and compliance with generally acceptable accounting principles. Accounting is derived from foreign accounting, which means the count or account. Almost all business activities around the world use this word to make a decision, which is often referred to as the language of business. Definition of accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and events related to finance, so it can be used by people who use it easily understandable to a decision-making and other purposes. The main functions of accounting are as an organization's financial information, so we could see the financial position of an organization along with the changes that occur in it. It is made qualitatively by a unit of measure of money. Financial information is needed especially by the manager or management to help make decisions of an organization. Basically, the accounting process is to make the output of the income statement, statement of changes in capital and balance sheet reports a company or other organization. Therefore, in each report must include company name, report name, and date of preparation or a period of the report to facilitate other people understand it. Reports can be periodic, can also be a certain time. Accounting has a process consisting of the stages to be able to produce the desired reports and performed by accountants. Clarify Process Transactions Initial stage is to conduct a transaction division of an organization or company in certain types predefined. Examples such as split transactions into the sales, purchasing, cash disbursements, cash receipts, etc. into each piece. As for the small number of transactions and rarely can both put in the same category as the type of miscellaneous transactions. Interpreting and Reporting Process Last accounting process is to manufacture the conclusion of the activities or the work of prior financial statements. All things related to poured on the company's financial statements. Of information or financial statements, in the form of income statement, statement of capital and balance sheet, then one can find out what happens to a company, whether it is in accordance with company objectives. Such information may be a reference or guideline for the management to take policy decisions on corporate organizations to achieve the desired conditions. Process Recording and Summarizing The next process is to perform accounting records. Enter transactions in journals that have the right to order the transaction occurred or what happened. Sources that can be used as evidence of the transaction such as business papers such receipts, bills, notes, receipts, certificates, and so forth. Journals that generally exist in the accounting journals such as the sales journal, purchases journal, cash receipts journal, cash disbursements journal and general ledger. The next step is to enter into a ledger journals on a regular basis. Transfer the results into the general ledger will be seen from the summary trial balance. Bookkeeping and accounting purposes is to provide information regarding the financial affairs of a company or business. This information is vital to know the business owners themselves, managers, creditors, and government agencies. Understanding of the principles of bookkeeping and accounting is essential for anyone interested in accounting, even essential for anyone who wants to succeed in business. So in brief we can say that 'Accounting (bookkeeping) related technical tasks such as recording transactions, and functions of an accountant is to interpret the data generated by use of the bookkeeping process. A person who made a living by recording the financial activities of a business or business employee, known as bookkeeping (bookkeeper), while the process of classifying and summarizing business transactions and interpreting the effects of the transactions carried out by an accountant.
Pages to are hidden for
"Accounting"Please download to view full document