Financial accountancy is used to prepare accounting information for people outside the organization or not involved in the day to day running of the company. Management accounting provides accounting information to help managers make decisions to manage the business. In short, Financial Accounting is the process of summarizing financial data taken from an organization’s accounting records and publishing in the form of annual (or more frequent) reports for the benefit of people outside the organization. The application of accounting principles was global also from the perspective of a nation having colonies overseas. Bookkeeping systems can be very primitive—cutting notches in a stick to tally how many sheep you have or moving beads on a string to track the score in a billiards game. But the importance of routine bookkeeping cannot be overstated; without bookkeeping, business is impossible. Rudimentary bookkeeping is ancient, probably predating both language and money. The book provides a comprehensive presentation of subject-matter in simple language and lucid style. It unfolds the concepts and application of accounting principles systematically to enable the readers to develop thorough understanding of each topic.
