Monday, 14 December 2020

Introduction to accounting

 


Introduction to accounting, very simply it is an information system where you analyze and record the operations of the entity that are monetarily measurable and that are characterized as complete and completed in the books with the aim of extracting a set of financial reports and statements about the life of the entity during a specific period of time.

 

These reports, which I consider a digital picture of the life of the facility during the accounting period, are light pulses for us, and we must understand them and be aware of what they refer to, because all the information of the establishment has been translated into numbers, and this is what I refer to as the informational re-engineering of ourselves in a way that makes us closer and loves the language of numbers.

 

The system :

Simply, it is a group of parts that work together in harmony in order to achieve a specific goal.

 

For example, the clock is a system that consists of hands and gears working with each other in order to inform us about time, and the university also has a system consisting of classrooms, faculty members, and service devices for faculty and students, and the goal is to provide a graduate to the community with scientific skills compatible with the surrounding environmental challenges.

 

The above are examples of man-made systems, and this means that there are systems made by the Creator and this is a fact. If we examine the solar system, for example, we find that it is a system that works according to a set of mechanisms, foundations, and rules that regulate its work, and the man-made system can intervene and modify components and objectives while That cannot be done in the Divine System.

 

Under accounting, the inputs are data and they are the raw material on which operations will be carried out. Operation is either manual or into operation and operation is the production art for converting the raw material (data) into a complete product (information), even if the system must work according to a set of principles. Which regulates a currency.

 

The accounting system also works under a set of principles, assumptions, concepts, and foundations that regulate the work of accounting, and the accounting system produces as outputs a set of information presented in the form of accounts and lists.

 

Statement of financial position :

It is simply a picture of the facility on a certain date and a moment from that date that shows all the assets that the facility owns and all its liabilities, whether for owners or others.

 

Have you noticed with me that we say what the facility owns and its obligations, whether for the owners or for others, That is, until now, the accounting separates the establishment from its owners, as it deals with the establishment on the basis that it has a legal personality separate from the owners, and the possession of that facility has a group of assets and has a group of liabilities?

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