What is accountancy?
What is accountancy?
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What is accountancy?
What is accountancy?
Read lessThe fundamental principles of commerce form the foundation for conducting business activities and maintaining the smooth flow of trade and economic growth. These principles provide the framework for how businesses, governments, and individuals engage in commerce, both locally and globally. 1. ExchanRead more
The fundamental principles of commerce form the foundation for conducting business activities and maintaining the smooth flow of trade and economic growth. These principles provide the framework for how businesses, governments, and individuals engage in commerce, both locally and globally.
These principles collectively form the basis for successful commercial operations, fostering economic growth, and ensuring the smooth exchange of goods and services in a competitive and regulated environment.
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Accountancy is the practice of recording, classifying, summarizing, and reporting financial transactions of a business or individual. It involves a systematic process that helps in analyzing the financial health and performance of an entity. Accountancy plays a crucial role in decision-making, complRead more
Accountancy is the practice of recording, classifying, summarizing, and reporting financial transactions of a business or individual. It involves a systematic process that helps in analyzing the financial health and performance of an entity. Accountancy plays a crucial role in decision-making, compliance with laws, and maintaining transparency in financial operations.
Key Functions of Accountancy:
1. Recording: Documenting all financial transactions in books of accounts (e.g., journals, ledgers).
2. Classifying: Organizing transactions into meaningful categories (e.g., assets, liabilities, income, expenses).
3. Summarizing: Preparing financial statements like the profit and loss account, balance sheet, and cash flow statements.
4. Analyzing: Interpreting financial data to understand profitability, liquidity, and solvency.
5. Communicating: Sharing financial information with stakeholders like management, investors, and regulatory authorities.
Types of Accountancy:
1. Financial Accounting: Focuses on preparing financial statements for external use.
2. Management Accounting: Provides financial data for internal decision-making.
3. Cost Accounting: Analyzes production costs to improve efficiency.
4. Auditing: Examines financial records for accuracy and compliance.
5. Tax Accounting: Focuses on tax compliance and planning.
Accountancy is essential for businesses to track their financial activities, comply with regulations, and make informed strategic decisions.
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