Placeholder Image

Subtitles section Play video

  • hello and welcome today we are going to learn What is accounting?

  • "introduction" accounting is a language that gives information

  • about the financial status of an organization. When we study accounting we are mainly learning

  • this specialized language. By learning this language we can communicate and understand

  • the financial position of any organization. Accounting allows a company to analyze the

  • financial performance of the business, and look at statistics such as net profit.

  • "definition"

  • Accounting is systematic process of identifying, recording, measuring, classifying, verifying,

  • summarizing, interpreting and communicating financial information. It reveals profit or

  • loss for a given accounting period, and the value of a firm's assets, liabilities and

  • owners' equity. The American Accounting Association defines

  • accounting as "the process of identifying, measuring and communicating economic information

  • to permit informed judgements and decisions by users of the information."

  • "THREE MAIN PARTS" Financial Accounting

  • One part of accounting focuses on presenting the information in the form of general-purpose

  • financial statements (balance sheet, income statement, etc.) to people outside of the

  • company. These external reports must be prepared in accordance with generally accepted accounting

  • principles often referred to as GAAP or US GAAP. This part of accounting is referred

  • to as financial accounting.

  • This is the information that is used by managers, shareholders, banks, creditors, the public

  • etc. to make decisions involving the organization and its operations. Shareholders want information

  • about what their investment is worth and whether they should buy or sell shares. This

  • type of information would be very difficult to extract if every company used a different

  • system for recording their financial position. Financial accounting information is subject

  • to a set of ground rules that dictate how the information is reported and this ensures

  • uniformity.

  • Accounting also provide company's management with the information in shape of reports it

  • needs to keep the business financially healthy. These analyses and reports are not distributed

  • outside of the company, This area of accounting is known as management accounting.

  • Another part of accounting involves compliance with government regulations pertaining to

  • income tax reporting.


  • Today much of the recording, storing, and sorting aspects of accounting have been automated

  • as a result of the advances in computer technology.The use of computers is making these transactions

  • much easier to post and work for the company. Reports of any kind can be produced with the

  • push of a button and a quick snapshot of required information is revealed.

hello and welcome today we are going to learn What is accounting?

Subtitles and vocabulary

Operation of videos Adjust the video here to display the subtitles

B1 US accounting financial information company gaap recording

What Is Accounting | Learn What The Accounting Is All About

  • 131 11
    Jane posted on 2016/12/24
Video vocabulary