Financial Accounting

Financial accounting which often expressed as "general accounting" is the main source of an accounting information system of a business entity. This book is an introduction to financial accounting which has as its primary subject the communication of relevant financial information to external parties. We strongly believe that a certain level of knowledge of the accounting model, the measurement processes involved, the data classifications and terminology is essential to the interpretation and effective use of financial statements and we have provided the necessary information in this book. The key to sound use of financial statements is to understand what they do and do not say, the measurement approaches used and the standards observed in their development.

Whether the accounting records for a given organization should be maintained manuallyelectronically will depend on several things, such as the size of the organization, the amount of data to be processed, the amount of information required and the need for promt access to stored data. Regardless of the method used, the underlying accounting concepts are essentially the same. Because a manually maintained system is most easily handled in the classroom and in problem situations, we use this type of system throughout this book.

Although rules and procedures of financial accounting are common, it will be practical and more useful for students to comprehend subjects based on uniform accounting system of Turkey vvhich is used by ali firms except financial institutions such as banks, insurance companies ete. Therefore this text has been designed to cover the basic knowledge essential of this system.

The objeetives of this book are to give a general overvievv of the concepts, principles and conventions of accounting as practiced today; to summarize main points of each subject area; to provide a means of checking your understanding and comprehension through practical exercises and their solutions. Following each chapter of this second edition exercises are given as study materials for students to help testing themselves and relating solutions at the end.