Chapter 04 - Accounting and Finance PDF

Accounting and Finance Chapter 4  Contents 1. Meaning of Accounting, Finance & Banking 2. Differences of Accounting, Finance & Banking 3. Fields of Accounting 4. Role of Banks in Finance 5. Role of Commercial Banks in Business ESSENTIAL READING https://ebookc...

Accounting and Finance Chapter 4  Contents 1. Meaning of Accounting, Finance & Banking 2. Differences of Accounting, Finance & Banking 3. Fields of Accounting 4. Role of Banks in Finance 5. Role of Commercial Banks in Business ESSENTIAL READING https://ebookcentral.proquest.com/lib/momp/detail.action? docID=410371&query=Accounting+and+Financial+Management+ for+I.T.+Professionals Loading… https://ebookcentral.proquest.com/lib/momp/reader.action? docID=573799&ppg https://ebookcentral.proquest.com/lib/momp/reader.action? docID=3016136&ppg=23 https://ebookcentral.proquest.com/lib/momp/reader.action? docID=3017404&ppg=20 https://ebookcentral.proquest.com/lib/momp/reader.action? docID=3017404&ppg=23 1. Meaning of Accounting, Finance & Banking 2. Difference - Accounting/Financing /Banking Loading… 2. Difference - Accounting/Financing /Banking 2. Difference - Accounting/Financing /Banking  3. Fields of Accounting Financial Accounting Financial accounting is the systematic procedure of recording, classifying, summarizing, analyzing, and reporting business transactions. The financial data is presented through Income statement and Balance sheet. Management Accounting: Refers to the outlining of financial and non-financial data for the utilization of management of the enterprise. Cost accounting The Chartered Institute of Management Accountants in England (CIMA) has defined Cost Accounting as, ‘the process of accounting for cost from the point at which expenditure is incurred or committed to establishment of its ultimate relationship with cost centers and cost units. It is a formal mechanism by means of which costs of products or services are ascertained and controlled. 3. Fields of Accounting Basis Financial accounting Management accounting Cost accounting Financial accounting is the Management accounting ‘the process of accounting for cost from systematic procedure of refers to the outlining of financial the point at which expenditure is incurred to Definition recording, classifying, and non- financial data for the establishment of its ultimate relationship with summarizing, analyzing and utilization of management of the cost centers and cost units. reporting business transactions. enterprise. It is a formal mechanism by means of which costs of products or services are ascertained and controlled The primary objective is to Furnishing data to the Ascertainment of cost and determining the provide information to users management to fix goals and selling price, cost control, finding the profit Objectives for decision making. anticipate strategies earned on each activity. Financial accounting provides a true and fair Collection and presentation of such evaluation of a business. information as required by management in its task of planning and making decisions External users like shareholders, Internal users like managers and Used by internal management at different levels creditors, government and financial employees Users analysts Financial accounting has the The scope is broader than cost and Focuses on distribution ,allocation determination recording of transactions, financial accounting it provides cost and accounting factors of the cost for managerial Scope summarization, analysis, reporting and financial information for uses and presentation of data to be used by managerial uses owners, managers, creditors,  4. Role of Banks in finance 1. Maintaining various deposits accounts. 2. Providing easy finance to business and individuals. 3. Clearing of checks. 4. Payment of bills. 5. ATM & Credit Card facilities. 6. Helping in money market operations. 7. Wire Transfer of funds. 8. Financial advisory, broking and insurance services etc. 5. Role of Commercial Banks in Business Definition of Commercial Bank Commercial Bank can be described as a financial institution, that offers basic investment products like a savings account, current account, etc to the individuals and corporates. Loading… Commercial banks are privately owned financial institutions which: 1. Accept deposits through different deposits account. 2. Make loans to individuals and organizations 3. Provide services (e.g. documentary collections, international banking, trade financing) 11 5. Role of Commercial Banks in Business Functions of commercial banks Functions of commercial banks https://www.maybank2u.com.my/maybank2u/malaysia/en/personal/wealth/digital_wealth/articles/overview/what-is-the-difference-between-accounts.page Functions of commercial banks  Functions of commercial banks 3.  Functions of commercial banks 4. Functions of commercial banks 5. Letter of Credit Letters of credit provided by banks for trading with customers and suppliers overseas. Doing business internationally can be risky: don’t know who they’re dealing with different country with different laws Letter of credit can offer protection to the entrepreneurs Functions of commercial banks 6.Payment and transaction processing: Banks help businesses to increase their revenues by providing services credit cards, checks, transfers etc., from customers and to suppliers reducing risk of carrying cash Functions of commercial banks 7.Foreign exchange: Banks help businesses in converting money and managing the risk of changing currencies if the businesses are operating overseas. 8.Investment Banking: Investment banks, help businesses deal with less-frequent major financial transactions. It collects money from the public when business issues shares and debentures.  CONTACT INFORMATION: Name of the Staff : Office:: Email: VERSION HISTORY Version No Date Approved Changes incorporated 01 Sem. (I) 2023 20