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INTRODUCTION
Accountancy is monetary record-keeping system which used in many economic activity. Accountancy used in economics activity start from low class until the high class, for the examples : small shop and big company.  And each activity which used accounting system, it will determine by complication of used accounting system, for example small shop only needing simple accounting system and big company will needing  more complex accounting system.
The users and uses of accounting information vary.  The users include indivuduals, businesses, investors and creditors, financial analysts, employees and labor unions, taxing authorities, and other users. Business manager use the accounting information to set the goals for their organizations, to evaluate their progress towards these goals and take corective actions if necessary. Potential investor use the financial statement to evaluate what return they can reasonably expect on their investment. Potential lenders use the accounting information to determine the borrower’s ability to meet the sceduled payments. Financial analyst use accounting information to advise their clients or employers about various investment alternatives. Employees and labor unions use the accounting information to evaluate salary and fringe benefit packages.
There are some accountancy specialization that is management accounting, financial accounting, and goverment accounting. Each accounting specialization will yield different accounting information. This is because they are also used accounting information in differen requirement.
DEFINITION
There are several kinds definitions of accounting.
·         Accounting is the systematic recording, reporting, and analysis of financial transactions of a business.
·         Accounting is collecting, summarizing, analyzing and reporting in monetary terms, information about the business.
·         Accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results.
·         Accounting is a system that measures bussiness activities, processes information into reports, and comunicates the findings to decision makers.
·         The American Institute of Certified Public Accountants (AICPA) defines accountancy as “the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character, and interpreting the results thereof.”
From definition  above we can take conclusion Accounting is the art of recording, classifying, analyzing, summarizing of financial transactions of a business and interpreting the results thereof to make decision or what else. Or we can take another definition, Accounting is service activity which give quantitative information of economic unity especially having the character of worthwhile finance in decision making.

TYPES OF ACCOUNTING
Accounting provides information to several groups of people and for different purposes.  As a result, there are several kinds of accounting:
·         Financial accounting provides information to external users.  Such external users can be investors, creditors, banks, regulatory bodies .
·         Managerial accounting provides information to internal users.  Such internal users include a company’s managers and employees.  The information accumulated and presented by managerial accounting function includes sales figures, gross margin analysis, cost information broken down by product line, etc
·         Tax accounting can be distinguished as another kind.  Tax accounting deals mainly with calculation of taxes .

ACCOUNTING ELEMENT
There are several kinds of accounting element :
·         Assets are resources owned by the business entity. Parts of asset is Cash, Supplies, Prepaid expenses, Buildings.
·         Liabilities are debts owed to outsiders (creditors). Accounts payable, Notes payable, Wages payable are parts of libilities
·         Owner’s equity is the owner’s right to the assets of the business.  A drawing account represents the amount of withdrawals by the owner.
·         Revenues are increases in owner’s equity as a result of selling services or products to customers. Parts of revenue is Fees earned, Commission revenue, and Rent revenue.
·         Expenses is The using up of assets or consuming services in the process of generating revenues. Wages expense, Rent expense, Miscellaneous expense are parts of expense.

BASIC OF ACCOUNTING SYSTEMS
·         Cash or receipt basis accounting implies that any transaction should be recorded in accounting records when cash movement takes place.  Only when cash is received from the customer, will the company record the sales transaction.
·         Accrual or mercantile basis accounting implies that any sales transaction, the revenue will be recognized by the company when the goods are delivered to the customer and not when the customer pays for the goods. 
·         Hybrid or mixed basis is the combination of both the basis i.e. cash as well as mercantile basis. Incomes are recorded on cash basis but expenses are recorded on mercantile basis. The following illustration will make the distinction clear between cash and mercantile basis of accounting.

JOURNAL
Journal is the transaction which is initially entered in a record.  The process of recording a transaction in the journal is called journalizing.  Journalizing requires the following steps:
·         Record the date.  If this is the first entry on the page, the year is inserted above the month.  As long as the month does not change, the rest of the journal entries on the require on the day be recorded.
·         The title of the account debited is listed in the Description column.
·         Enter the amount in the Debit column.
·         Record the credit account in the Description column.
·         Enter the amount in the Credit column.

NATURE OF THE ADJUSTING PROCESS
Under the accrual basis of accounting, revenues are reported in the income statement in the period in which they are earned. The accounting concept that supports this approach to reporting of revenues is called the revenue recognition concept. The accounting concept that supports reporting revenues and related expenses in the same period is called the matching concept, or matching principle.
Under the cash basis of accounting, revenues and expenses are reported in the income statement in the period in which cash is received or paid. The analysis and updating of accounts at the end of the period before the financial statements are prepared is called the adjusting process.   The journal entries that bring the accounts up to date at the end of the accounting period are called adjusting entries. 
Prepaid expenses, sometimes referred to as deferred expenses, are items that have been initially recorded as assets but are expected to become expenses over time or through the normal operations of the business.  Unearned revenues, sometimes referred to as deferred revenues, are items that have been initially recorded as liabilities but are expected to become revenues over time or through the normal operations of the business. 
Accrued revenues, sometimes referred to as accrued assets (accrued means unpaid), are revenues that have been earned but have not been recorded in the accounts.  Accrued expenses, sometimes referred to as accrued liabilities, are expenses that have been incurred but have not been recorded in the accounts. 

FOUR BASIC FINANCIAL STATEMENTS
There are four basic financial statements in financial accounting
·           Income Statement shows the profit or loss for the period.  It includes revenues and expenses, which provide the net result for the period.
·           Equity Statement shows the capital and other equity accounts of the company and how such accounts changed during the period.
·           Balance Sheet shows the company’s assets, liabilities and equity as of the end of the period.
·           Cash Flow Statement shows the cash movements during the period.  Such cash movements include all cash receipts and expenditures.

SOURCES
Simple Studies. 2010. Introduction to Accounting. http://simplestudies.com/accounting/lec/p0101.htm
Warren, Carl S, Reeve, Fess.2005. Accounting. South Western : Thomson Learning

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