What is Accounting?
Accounting is the language of business

Nature of Financial Accounting
The Nature of Accounting is the identification, measurement and communication of financial information about economic entities to interested persons

Objectives / functions of Financial Accounting
One of the main functions of financial accounting is the preparation of final accounts, also commonly referred to as financial statements.

Pillars of Accounting
Assets
Liabilities
Capital
Revenues
Expenses

ASSETS

Fixed Assets | Current Assets | * Tangible Assets Have physical existence * Land * Building * Parking Area * Plant & Machines * Equipments * Motor Vehicle * Intangible Assets Have no physical existence * Patents * Copyrights * Goodwill * Etc. | * Cash and Bank * Accounts Receivables * Inventory of goods * Office Supplies * Office Furniture * Prepaid expenses * Advances |
Patents
A manufacturing and research company control over the use and sale of a specific design in manufacturing process etc.

Copyrights
A business sole authority to reproduce and sale a software, book, magazine, journal, etc. Goodwill It represents the excess of cost paid by the purchasing business to the purchased business over the fair value of purchased business identifiable assets.

LIABILITIES

Long Term Liabilities | Current Liabilities | Long-term liabilities are reasonably expected not to be liquidated or paid off within a year. These include: * long-term leases * Pension obligations * Long term bonds * Note Payable * Debenture * Long Term Bank Loan | Current are those liabilities that must be paid within one year. These liabilities include: * Account payable * Salaries payable * Interest payable * Income tax payable *