Page 9 - IC26 LIFE INSURANCE FINANCE

CHAPTER-1

ACCOUNTING : AN INTRODUCTION

UNIT 1: MEANING AND SCOPE OF ACCOUNTING

1. Transaction and Event:

Transaction : It means "a business, performance of an act, an agreement".

Event : It is "A happening; as a consequence of transaction, a result."

2. Meaning of Accountancy: The process of identifying, measuring and communicating
economic information to permit informed judgments and decisions by the user of accounts.

3. Procedural aspects of Accounting

(a) Generating financial Information

(i) Recording

(ii) Classifying

(iii) Summarizing

(iv) Analysing

(v) Interpreting

(vi) Communicating

(b) Using the financial information

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