Advanced Diploma in the Theory of Accounting (ADTA) at Polytechnic of Namibia

Advanced Diploma in the Theory of Accounting (ADTA) at Polytechnic of Namibia

What is Accounting?

Accounting, also known as accountancy, is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations.


The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.

Frequently Asked Questions

What is accounting cycle?

The accounting cycle is a collective process of identifying, analyzing, and recording the accounting events of a company. It is a standard 8-step process that begins when a transaction occurs and ends with its inclusion in the financial statements.

Why do we need accounting?

Accounting plays a vital role in running a business because it helps you track income and expenditures, ensure statutory compliance, and provide investors, management, and government with quantitative financial information which can be used in making business decisions.

What is accounting with example?

The definition of accounting is the process of systematically recording and managing financial accounts. Preparing a Profit and Loss Statement is an example of accounting. noun.

What is accounting with author?

According to the AICPA(American Institute of Certified Public Accountants), “Accounting is the art of recording, classifying and summarizing in a significant manner and terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the result thereof.”

What are the 7 functions of accounting?

Your accounting department should master and perform seven crucial functions. They include account receivable and payable, payroll, inventory management, budgeting, reports and financial statements, legal compliance and financial control, and record-keeping.

What are the 4 functions of accounting?

The functions of accounting include the systemic tracking, storing, recording, analysing, summarising and reporting of a company’s financial transactions.

What is worksheet in accounting?

An accounting worksheet is a document used within the accounting department to analyze and model account balances. A worksheet is useful for ensuring that accounting entries are derived correctly. It can also be helpful for tracking the changes to an account from one period to the next.

What system is used for accounting?

An accounting information system (AIS) is used by companies to collect, store, manage, process, retrieve, and report financial data. AIS can be used by accountants, consultants, business analysts, managers, chief financial officers, auditors, and regulators.

Why is accounting a process?

Accounting is a process that sets out to make sense of the everyday financial transactions that a business will encounter. This process deals with the constant stream of paperwork that usually accompanies every financial transaction, for example invoices received from suppliers for goods the business has bought.

How is accounting an art?

Accounting can be considered an art because it requires creative judgment and skills. In order to perform accounting functions well, discipline and training is required.

What is the first main function of accounting?

The first and foremost function of accounting is the systematic record-keeping of the financial transactions, on a regular basis.

What is the other name of accountant?

In this page you can discover 35 synonyms, antonyms, idiomatic expressions, and related words for accountant, like: figurer, bookkeeping expert, chartered accountant, actuary, calculator, auditor, reckoner, bookkeeper, inspector of accounts, documentalist and liquidator.

What is the accounting test?

The Accounting and Finance aptitude test evaluates a candidate’s ability to measure, process, and communicate the financial information of a business, as well as the aptitude for logical, numerical, and verbal reasoning.

Why accounting is called science?

Accounting is a science because it involves certain principles which are universally applicable. The items which are recorded in the books of accounts are based on certain definite principles. It consists of concepts, conventions, rules and principles etc. However, there is no cause and effect relationship established.

Why is accounting a discipline?

Accounting necessarily became a discipline because it had the function of bringing decisions under the discipline of enterprise prior transaction experience. A result of this service of accounting was that of training (disciplining) management toward experience-based decision-actions.