Accounting is an old profession. The business transaction has been recorded and analyzed for centuries. Accounting is more that bean counting or killer whole counting.
Today Accounting is the language of business; anyone who aspires to a business career must, to some degree, speak that language. Organizations run on their numbers and Accounting plays an increasingly important role decisions.
Accounting may be described as a system of recording, classifying and summarizing events of an organization in a meaningful manner so as to be able to communicate the results of such events to the users of such financial information.
Definition of accounting
The American Accounting association – “Accounting is the process of identifying, measuring, communicating economic information to permit informed judgments and decisions by users of the information.”
The American Institute of Citified Public Accounts (AICPA) – “Accounting is the act of recording, classifying and summarizing in a significant manner and in terms of money, transaction and events which are, in part at least, of a financial character and interpreting the results thereof.”
It is not possible for a businessman to keep in memory all the businessmen feel the necessity to find out profit earned or loss incurred during that period of time and they like to know the position of their business. It is only possible when they keep the record of their business transactions in the form of Accounting.
You May Like Also:
- Accounting as a career / profession
- The concepts / Assumptions / Principles of accounting
- The Modifying Accounting Conventions
- Difference between bookkeeping and accounting
- Steps in the accounting process
- Difference between account and accounting
- Some Core Concepts of Accounting
- Functions of Accounting
- Basic principles of accounting information system