What will u learn ?
- Meaning of accountingÂ
- Definition of accounting
- Objective of accounting
What will you achieve?
You will gain clarity about meaning, definition and objectives of accounting
MEANING OF ACCOUNTING :
Accounting is a system which collects and process financial information of a business
DEFINITION OF ACCOUNTING :
American accounting association defines accounting as “the process of identifying, measuring and communication economic information to permit informed judgements and decision by users of the information“
American Institute of Certified Public Accountants ” accounting is the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are in part , at least of a financial character and interpreting the results thereof ”
1. To Maintain accounting record :
Accounting is used to maintain a systematic record of all financial transactions in a books of accounts
2. To Calculate the result of operation :
Every business owners need to know the net result of their business operation
3. To Determine the Financial position :
To know the assets and liabilities of the business
4. Providing Information to the User :
These information are reported to the users to enable them to make appropriate decisions
