Defination of Accounting - Bzziii

According to the American Institute of Certified Accountants, 1941, “Accounting is an art of recording, classifying and summarising in a significant
Define accounting.




According to the American Institute of Certified Accountants, 1941, “Accounting is an art of recording, classifying and summarising in a significant manner and in terms of money transactions and events that are, in part at least, of a financial character and interpreting the results thereof.” 

    So, Accounting is the process of collecting, recording, summarising and communicating financial information to its users for correct decision making. 

   Accounting is an art as well as science. Bookkeeping is a part of accounting and mainly concerned with recording of financial data. Users of accounting information may be internal users and external users. Internal users include owners, management etc, External users include Banks and financial institutions, creditors etc. Importance accounting terms are business transactions expenses all include and income all include, profit, loss, purchase, liabilities, assets, inventory etc.






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