Cheat sheet · Class 11 · CBSE · Commerce Accountancy
Introduction to Accounting cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 11 · Accountancy
Cheat sheet
Chapter 1Introduction to Accounting
Identify → Record → Classify → Summarise → Communicate.
1. Meaning
Accounting identifies, measures, records and communicates financial information to users for decision-making.
Book-keeping is the recording part only.
2. Users
Internal
owners, management, employees.
External
investors, lenders, creditors, government, tax authorities, public.
3. Basic Terms
| Term | Meaning |
|---|---|
| Capital | amount invested by the owner |
| Drawings | cash/goods taken by the owner for personal use |
| Assets | resources owned (fixed, current) |
| Liabilities | amounts owed (non-current, current) |
| Revenue / Expense | income earned / cost incurred to earn it |
| Debtors / Creditors | owe the business / the business owes them |
4. Qualitative Characteristics
- reliability
- relevance
- understandability
- comparability
5. Key Points
- Accounting is an information system.
- Limitations: ignores non-monetary facts, historical cost.
- Financial accounting focuses on outsiders.
- Branches: financial, cost, management.
Remember: Process of accounting | users | basic terms
Introduction to Accounting: questions and notes
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