Introduction to Accounting — PREVIEW Course: ATD — Accounting Technicians Diploma | Level: Level I This is a free preview covering the introduction and Section 1 only. Table of contents (full paper) 1. Nature and purpose of accounting — *included in this preview* 2. The accounting equation and source documents — full version only 3. Double entry bookkeeping — full version only 4. Books of original entry — full version only 5. Balancing accounts and the trial balance — full version only 6. Cash book and petty cash — full version only 7. Correction of errors — full version only 8. Introduction to final accounts — full version only 9. Full worked question — full version only 10. Self-assessment question bank, 10 original questions with model answers — full version only 11. Exam technique and revision checklist — full version only 1. Nature and purpose of accounting Accounting is the systematic process of recording, classifying, summarising, and interpreting financial transactions of a business so that its financial position and performance can be understood by those who need to make decisions about it. 1.1 Objectives of accounting • To maintain a permanent, reliable record of every transaction. • To determine profit or loss for a period. • To ascertain the financial position (assets, liabilities, capital) at a point in time. • To provide information for planning, control, and decision-making. • To satisfy legal and tax reporting obligations. 1.2 Bookkeeping vs accounting Bookkeeping is the mechanical, day-to-day recording of transactions. Accounting is broader — it includes bookkeeping, but also classification, summarising, analysis, and communication of financial information. 1.3 Users of accounting information | User | Interest | |---|---| | Owner(s) | Profitability and return on their investment | | Management | Day-to-day control and performance monitoring | | Creditors/suppliers | Ability of the business to pay amounts owed | | Government (KRA) | Correct assessment and payment of tax | Unlock the full paper The complete version includes double entry bookkeeping, books of original entry, the trial balance, cash book and petty cash, correction of errors, an introduction to final accounts, a full worked question, and a 10-question original self-assessment kit with model answers. Purchase the full paper to continue. ATD Level I — Introduction to Accounting (Preview) — Page 1 of 2 ATD Level I — Introduction to Accounting (Preview) — Page 2 of 2