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Lesson 1: Introduction

The document introduces accounting and explains that it provides explanations by recording transactions, making it the language of business. It also notes that accounting differs based on the stakeholder, whether it be financial accounting, managerial accounting, or tax accounting.

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M Anas Bzatè Khud
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3 views8 pages

Lesson 1: Introduction

The document introduces accounting and explains that it provides explanations by recording transactions, making it the language of business. It also notes that accounting differs based on the stakeholder, whether it be financial accounting, managerial accounting, or tax accounting.

Uploaded by

M Anas Bzatè Khud
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Lesson 1: Introduction

Introduction
•  Do you know the difference between the Balance Sheet
and Income Statement?

•  Have the words ‘Debit’ and ‘Credit’ often haunted you?

•  Do you know what you need to look for in a business


before you invest money or buy their stock?

© KayOne Education, 2015


Introduction
•  Interestingly, the single biggest skill in life that could make or break your
financial success is not taught in school.

•  Many entrepreneurs run businesses without having a clue on how to read a


balance sheet.

•  Business owners are and continue to remain dangerously ignorant of their


numbers and the tax laws.

© KayOne Education, 2015


Did you know?

Small business owners do not Small businesses which face a Single biggest reason why
review their monthly balance sheets serious financial literacy gap businesses didn’t succeed

© KayOne Education, 2015


Who should attend?
This course is meant for those people:

•  Who know very little on accounting and finance and would like to learn more;

•  Who are managers or entrepreneurs and they regularly receive financial information
but are not able to make sense of the numbers; and

•  Who have invested money in businesses or stocks and are not sure how the business
is performing financially.

This course is meant for beginners and not for professionals.

© KayOne Education, 2015


What is Accounting?
Language of
Business

Actions
Accounting
Account Explanations
Explain

Transactions

© KayOne Education, 2015


What is Business?
GAAP

How much
profits
Higherare Is my
Profits
they Business
Accurate
making? $10 $75 doing
Profits
$40 well?

Managerial
Financial Accounting
Accounting
Joe’s Furniture Factory
Tax
Accounting
Tax Laws
Is the
Business
Lower
Profits
paying
External taxes? Govt. Internal
© KayOne Education, 2015
•  Accounting is the process of providing
explanations.
Summary
•  These explanations are given by recording
Introduction transactions.

•  It is thus called the “language of business”.

•  In any business there are three stakeholders.

•  For each stakeholder the type of information


required is different and hence the accounting is
different.

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