Accounting Self Study Guide for Staff of Micro Finance …

Short Description
Accounting Study Guide. Lesson 1. Role of Accounting. Accounting falls into two general categories: financial accounting and. management accounting. …

Website: www.ruralfinance.org | Filesize: 73kb

Content
Accounting - Self Study Guide for Staff of Micro Finance Institutions
LESSON 1
DEFINITION OF ACCOUNTING
Objectives: The purpose of this lesson is to introduce the concepts of accounting, what it is used for and who uses it. You will develop a basic understanding of the role accounting plays and why it is important to create accounting records and how they aid in the financial management of a credit operation. Basic accounting principles and the most widely used financial statements — the Balance Sheet, the Income Statement and the Statement of Changes in Financial Position are introduced. Topics include:
?Definition of accounting
?Role of accounting
?Basic accounting concepts
?Financial statements
Definition of Accounting
Accounting is the process of financially measuring, recording, summarizing and communicating the economic activity of an organization. It is often referred to as “the language of business” and, like any other language, it has its own unique vocabulary and rules. Some people think of accounting as a highly technical field understood only by professional accountants. However, technical accounting terms such as assets, liabilities, equity, revenue, expense, income and cash flow are widely used throughout the micro-finance field. Thus it is important…

Get the file Download here