NCERT Book Class 11 Accountancy Chapter 1 Introduction to Accounting

Introduction to Accounting 1

O ver the centuries, accounting has remained
confined to the financial record-keeping
functions of the accountant. But, today’s rapidly
changing business environment has forced the
accountants to reassess their roles and functions
both within the organisation and the society. The
role of an accountant has now shifted from that of a
mere recorder of transactions to that of the member
Learning Objectives providing relevant information to the decision-
After studying this chapter
making team. Broadly speaking, accounting today
you will be able to: is much more than just book-keeping and the
• state the meaning and preparation of financial reports. Accountants are
need of accounting; now capable of working in exciting new growth
• discuss accounting as areas such as: forensic accounting (solving crimes
a source of information;
such as computer hacking and the theft of large
• identify the internal
and external users of amounts of money on the internet); e-commerce
accounting information; (designing web-based payment system); financial
• explain the objectives planning, environm ental accounting, etc. This
of accounting;
realisation came due to the fact that accounting is
• describe the role of
accounting; capable of providing the kind of information that
• explain the basic terms managers and other interested persons need in order
used in accounting. to make better decisions. This aspect of accounting

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