Professional Documents
Culture Documents
Understanding Fundamentals of
Financial Accounting
By Ghanendra Fago
(MBA, M Phil)
Unit -I:
Understanding fundamentals of Financial Accounting
Forms of business organization
Types of Business
Business and Accounting
Accounting information,
Book Keeping Vs. Accounting,
Users of Accounting Information
Means of Accounting information
Functions of accounting
Branches of Accounting
Career in accounting
Assignment and Project Work
Group Assignment I:
Understanding Annual Reports and its Contents of a
Listed Company
Individual assignment I
What is Business?
A continuous economic activity carried out to earn
profit through:
Production and sales of goods and services to
customers
Generating and rendering services
Types of Business
Manufacturing
Merchanding/Trading Companies
Services
Hybrid companies
Forms of Business Organization
Sole Proprietorship/ Trading ,
Partnership Firm,
Joint Stock Company and
Others like cooperative, non-profit
making etc.
Users of Accounting Information
Ultimately, all accounting information is accumulated to help
someone make decisions Like company president, a production
manager, a hospital or school administrator, a sales manager, a
shareholder, a small-business owner, a politician–the list is almost
infinite.
Almost all managers in every organization are better equipped to
perform their duties when they have a reasonable grasp of
accounting data.
For example, a knowledge of accounting is crucial for decisions by
government agencies regarding research contracts, defense
contracts, and loan guarantees.
In fact, a survey of managers ranked accounting as the most
important business course for future managers.
Users of Accounting Information
External users
Creditors and Suppliers
Tax authorities
Regulatory bodies
Economics Planners
Government
Customers
Shareholders and Investors
Employees and Workers