Accounting Principles and Human Resource Management Fundamentals
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1. Nature and Scope of Accounting
Nature of Accounting
- Systematic Process: Identifying, recording, classifying, summarizing, and interpreting business transactions.
- Historical in Nature: Primarily records past events.
- Quantitative: Deals mostly with financial/monetary information.
- Dual Aspect: Based on the double-entry system (debit equals credit).
- Communication Tool: Provides information to stakeholders.
Scope of Accounting
- Financial Accounting: Recording and reporting of transactions (Profit & Loss, Balance Sheet).
- Cost Accounting: Ascertainment of cost, cost control, and decision-making.
- Management Accounting: Provides financial and non-financial information for planning and control.
- Tax Accounting: Deals with income tax, GST, and compliance.
- Auditing: