EssentialsofAccounting會計基礎AnIntroductiontoAccountingUnit1Unit1TheHistoryandDevelopmentofAccountingAnIntroductiontoAccounting11.1TheHistoryandDevelopmentofAccountingAccountingrecordsdatebacktotheancientcivilizationsofChina,Babylonia,GreeceandEgypt.FinancialAccounting&ManagerialAccountingSpecializedfieldsofaccountingAuditing,costaccounting,taxaccounting,budgetaryaccounting,governmentalandnon-for-profitaccounting,humanresourcesaccounting,environmentalaccounting,socialaccounting,internationalaccounting.1.1TheHistoryandDevelopmentofAccountingBRANCHESOFACCOUNTINGFINANCIALACCOUNTINGSystematicmethodofrecordingtransactions,mainpurpose-P/L&B/S,usefultocreditors,banks,financialinstitutions,etc.,accuratepictureoffinancialpositionCOSTACCOUNTINGEvaluatingcost,costcalculationbyconsideringallfactorsofbothmanufacturing&administration,goal-pricefixation,costcontrol,pinpointswastages,leakagesMGT.ACCOUNTINGBetteradministration,efficientdecisionmakingviaMlS,CVP&BEPanalysis，etc.,profitenhancement,secrecyofrecords,usefultocreditors,shareholdersAUDITINGAuditorinspects&certifiestheA/Csforaccuracy,internalauditbytheco.employeealsoperformedTAXACCOUNTINGPreparation&filingoftaxreturns,complianceoflaws,taxreportspreparation,reductionoftaxesinlegalwayverification,consideringdifferentaspectsoftaxesFUNDACCOUNTINGKeepingrecordsoffundsofNPOs,separatefundsmaintainedforseparateworksforassuranceofusageGOVT.ACCOUNTINGKeepingrecordsforcentral&stategovt.forallocations&utilizationofvariousbudgetstoensureproperusageFORENSICACCOUN'TINGCalculatesdamagesorsettlingdisputesinlegalmatters，investigationscarriedout,alsocalledlegalaccountingFIDUCIARYACCOUNTINGAccounting&evaluationofathirdparty'sbusiness&propertymaintainedunderthecareofanotherUnit1TheNatureofAccountingAnIntroductiontoAccounting21.2TheNatureofAccountingAccountingusesitsownspecialwordsandsymbolstocommunicatefinancialinformationthatisintendedtobeusefulforeconomicdecisionmakingbymanagers,shareholders,creditorsandmanyothers.Soaccountingisaninformationsystemthatidentifies,measuresandrecordsbusinessactivities,processestheinfor-mationofthoseactivitiesintoreportsandfinancialstatements,andcommunicatesthesefindingstodecision-makers.(1)Thelanguageofbusiness1.2TheNatureofAccounting(2)therelationshipofaccountingandbookkeepingBookkeepingAccountingaprocessofaccountinganalysis,interpretation,anduseofinformationthemeansofrecordingtransactionsandkeepingrecordbeinterestedinfindingtrendsandstudyingtheeffectsofdifferentalternativesasmall,simplepartofaccounting(mechanicalandrepetitive)includingsystemdesign,costanalysis,auditing,taxpreparationUnit1UsersofAccountingInformationAnIntroductiontoAccounting31.3UsersofAccountingInformationExternalUsersLendersShareholders GovernmentsConsumerGroupsExternalAuditorsCustomersInternalUsersManagersOfficers/DirectorsInternalAuditorsSalesStaffBudgetOfficersControllersFinancialaccountingprovidesexternaluserswithfinancialstatements.Managerialaccountingprovidesinformationneedsforinternaldecisionmakers.Unit1AccountingProfessionAnIntroductiontoAccounting4PrivateAccountants

toworkforasinglebusinessorunit;e.g.:controller,treasurer,chieffinancialofficerPublicAccountants

toservethegeneralpublicandcollectprofessionalfeesfortheirwork;e.g.:auditing,taxplanning,managementconsultingpublicaccountingfirmsarecalledCAfirms,CPAfirms,orCMAfirms,dependingontheaccountingbody;CA:CharteredAccountantCPA:CertifiedPublicAccountant(orCGA)CMA:CertifiedManagerialAccountant1.4AccountingProfessionUnit1ManagerialAccountingandFinancialAccountingAnIntroductiontoAccounting5Managerialaccountingcoversmanyactivities,includingcostbehaviorandcost-volume-profitrelationships,decisionmakingthroughincrementalanalysis;capitalbudgeting;budgetingforfinancialplanningandcontrol;flexiblebudgetingforperformanceevaluation;thedeterminationofmanufacturingcostsandcostingsystems;andaccountingandreportingforbusinesssegmentoperationsFinancialaccountingisconcernedwithreportinginformationtousersexternaltoanentityinordertohelpthemtomakesoundeconomicdecisionsabouttheentity’sperformanceandfinancialposition.

1.5ManagerialAccountingandFinancialAccounting1.5ManagerialAccountingandFinancialAccountingFinancialAccountingManagementAccountingPurposeCommunicationoffinancialpositionDecisionmakingRequirementMandatoryOptionalPrimaryAudienceExternalInternalInvestors,Regulators,Taxauthorities,etc.Management&decisionmakersRegulation/guidelinesGAAP,IFRS,IASNoneFrequencyQuarterly,AnnualorperperiodAsneededandongoingExternalreviewAuditors,RegulatorsNoneFocusPasttransactionInformationtoaiddecisionsforthefutureScopeCompanywideNarrowpersegment,product,etc.asneeded.SummaryExplainthenatureofaccountingandits