An Accounting Overview (English version)

Accounting is frequently called the “language of business” because of its ability to communicate financial information about an organization. Various interested parties, such as managers, potential investors, creditors, and the government, depend on a company’s accounting system to help them make informed financial decisions. An effective accounting system. Therefore, must include accurate collecting, recording, classifying, summarizing, interpreting, reporting of information on the financial status of an organization.

In order to achieve a standardized system the accounting process follows accounting principles and rules. Regardless of the type of business or the amount of money involved, common procedures for handling and presenting financial information are used incoming money (revenues) and outgoing money (expenditures) are carefully monitored, and transactions are summarized in financial statements, which reflect the major financial activities of an organization.

Two common financial statements are the balance sheet and the income statement. The balance sheet shows the financial position of a company at one point in time, while the income statement shows the financial performance of a company over a period of time. Financial statements allow interested parties to compare one organization to another and/or to compare accounting period within one organization. For example, an inevestor may compare the most recent income statements of two corporations in order to find out which one would be a better investment.

People who specialize in the field of accounting are known as accountants. In the United States, accountants are usually classified as public, private, or governmental public accountants work independently and provide accounting services such as auditing and tax computation to companies and individuals. Public accountants may earn the title of CPA (Certified Public Accountant) by fulfilling rigorous requirements. Private accountants work solely for private for companies or corporations that hire them to maintain financial records, and governmental agencies or bureaus. Both private and governmental accountants are paid on a salary basis, whereas public accountants receive fess for their services.

Through effective application of commonly accepted accounting systems, private, public, and governmental accountants provide accurate and timely financial information that is necessary for organizational decision making.

What is Accounting??

Accounting Is a specialist in collecting, recording, classifying, summarizing, interpreting and reporting financial Information of a business. Accounting can also be defined as the art of communicating financial Information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management.

Accounting is called “the language of business” because it is the vehicle for reporting financial information about a business entity to many different groups of people. Accounting that concentrates on reporting to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditor. Management accounting is concerned primarily with providing a basis for making management or operating decisions. Accounting that provides Information to people outside the business entity is called financial accounting and provides information to present and potential shareholders, creditors such as banks or vendors, financial analysts, economists, and government agencies. Because these users have different needs, the presentation of financial accounts is very structured and subject to many more rules than management accounting. The body of rules that governs financial accounting is called Generally Accepted Accounting Principles, or GAAP.

Accounting has also been defined by the AICPA as “The art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.”

Active & Passive Voice

ACTIVE
1. You have not paid your bill.
2. I will picked him up at 07.00 AM.
3. The board did not show any immediate interest.
4. We cannot find any record of this account.
5. We will have to make salary cuts and shortened holiday.
6. We have made a mistake and incurred a loss.
7. You have overdrawn your account to the extent of $187.
We have made arrangements to have a statement forwarded to you so that your exact position can be checked


PASSIVE

1. Your bill has not been paid.
2. He will be picked up at 07.00 AM.
3. No immediate interest was shown by the board.
4. No record of this account can be found.
5. Salary cuts will have to be made and holiday shortened.
6. A mistake has been make & lose incurred.
7. Your Account has been overdrawn to the extent of $187.

Arrangements have been made to have a statement forwarded to you so that your exact position can be checked

Supply its definition! Seasion 1

Accounting

Accounting is a specialized collecting, recording, classifying, summarizing, interpreting, and reporting financial information of a business.

Accountant

Accountant is a specialist in the field of accounting.

Public Accountant

Public Accountant is an accountant who provides accounting services such as auditing, and tax computation to companies and individuals an receive fee for business.

Governmental Accountant

Governmental Accountant is accountants who work with government agencies or bureaus.

Private Accountant

Private Accountant is accountant who works with Profit Company.

CPA

(Certified Public Accountant)

Balance Sheet

Balance Sheet is a financial state of company on particular time.

Income Statement

Income Statement is financial statement that shows financial performances of a company over a period of time.

Assets

Assets are an anything of value own by company.

Current Assets

Current Assets is a assets that easily to change to money.

MANAGEMENT FUNCTIONS

Management plays a vital role in any business or organized activity. Management is composed of a team of managers who have charge of the organization at all levels. Their duties include making sure company objectives are met and seeing that the business operates efficiently. Regardless of the specific job, most managers perfom four basic functions:
• Planning
• Organizing
• Directing
• Controlling
Planning involves determining overall company objectives and deciding how thase goals can be achieved. Managers evaluate alternative plans before choosing a specific course of action and then check to see that the chosen plan fits into the objectives estabiished at higher organizational levels. Planning is listed as the first management function because the others depend on it. However, even as management move on to perfom other managerial functions, planning continues as goals and alternatives are further evaluated and revised.
Organizng, the second management function, is the process of putting yhe plan into action. This involves allocating resources, especially human resources, so that positions to be created and determine the associated duties and responsibilities. Staffing, choosing the right person for the right job, may also be included as part of the organizing function.
Third is the day to day direction and supervision of employees. In directing, managers guide, teach, and motivate workers so that they reach their potential abilities and at the same time achieve the company goals that were estabilished in the planning process. Effective direction, or supervision, by managers requires on going communication with employees.
In the last management function, controlling, managers evaluate how well company objectives are being met. In order to complete this evaluation, managers must look at the objectives estabilished in the planning phase and at how well the task assigned in the directing phase are being completed. If major problems exist and goals are not being achieved, then changes need to be made in the company’s organizational, or managerial, structure. In making changes, managers might have to go back and replan, reorganize, and redirect.
In order to adequately and efficiently perfom these management functions, managers need interpersonal, organizational, and technical skills. Although all four functions are managerial duties, the importance af each may vary, depending on the situation. Effective managers meet the objectives of the company through a successful combination of planning, organizing, directing, and controlling.