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CS Executive Corporate and Management Accounting Notes (CMA Short Summary Notes)
CS Executive Corporate and Management Accounting Notes Introduction to Financial Accounting
Accounting is the art of recording, classifying and summarizing transactions and events
which are of a financial character in terms of money, and interpreting the results thereof.
Three main branches of accounting are financial accounting, cost accounting and
management accounting.
Accounting functions are: keeping systematic records; protecting and controlling business
properties; ascertaining the operational profit/loss; ascertaining the financial position of
the business; and facilitating rational decision-making.
Accounting is the language of business and is used to communicate financial and other
information to different interested parties, like owners, manager, creditors, investors,
researchers and government.
Accounting information should be relevant, reliable, comparable, understandable, timely,
neutral, verifiable and complete.
Accounting can be based on cash or accrual sys
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