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Principles of Accounting
Prepared By:Dr. H. M. Mosarof Hossain
Professor
Department of Finance
University of Dhakamosarofdu.ac.!d
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"hapter # : Accounting in Business
$rgani%ations and &ociety
Business organi%ation:i. "orporationii. &ole
proprietorship
iii. Partnership
"ommon activities in !usiness' government andnonprofit
organi%ations:i. Finance
ii. Human resources
iii. (esearch and developmentiv. Production
v. Marketing
vi. )*ecutive management
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Accounting and its role in organi%ations
i. Accounting provides important information to people for
making rational investment, credit and other decisions.
ii. It provides relevant information to investors, lenders,
managers, suppliers, customers and employees.
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Using accounting to serve internal needs
i. Finance + cash flo, information
ii. Human resources + payroll information
iii. (esearch and development + cost report
iv. Production + production reports and internal
controls
v. Marketing + sales reports and costs reports
vi. )*ecutive management + financial statements'
!udgets and performance reports
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Using accounting to serve e*ternal needs
i. $,ners + company-s performance and financial
strength
ii. enders/creditors + financial strength and profit
positioniii. 0oters' legislators and officials + receipts
and
e*penditures 1in case of govt.2
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3hy study accounting4
i. Accounting as a future careerii. It avoids misunderstaing and
misniterpretation of
information
Difference !et,een !ookkeeping and accounting:
Accountig and computers:
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5ypes of accounting and accountants
Accounting:i. Financial accounting
ii. Managerial accounting
iii. Cost accounting
iv. Tax accounting
Accountants:
I . Private accountants
ii. Pulic accountsiii. !overnment accountants
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5he importance of ethics in accounting
5he meaning of ethics:)thics in !usiness:
)thics in accounting:
