The not-for-profit, governmental, or other units may be local, national, or international; they may be small or very large; they may even be entire nations, as in national income accountingOn the other hand, science means a disciplined knowledge of a particular matter.The information that accounting gives is very important to run it, that why accounting is also known as “BUSINESS LANGUAGE”.Man is a social being.
Thus it is clear from the above discussion that accounting has the elements of both science and art.We all know that any accounting involves a fine recording, summarizing, proper classification as well as the interpretation and communication of financial information. Accounting is the process of recording, summarizing, analyzing, and reporting financial transactions of a business to oversight agencies, regulators, and the IRS. Management must find out its positive and negative points.
Because all individuals have got their limitations, they are to depend on society as a whole for their necessary goods and services. Their procedures are very systematic. accounting definition: 1. the skill or activity of keeping records of the money a person or organization earns and spends…. That’s why it is regarded as a science.In other words, accounting is a practice and body of knowledge concerned primarily withLastly, accounting entails conducting an analysis of the result.
Sentences of road 8000 of little used to in organization for decision making. Accounting provides quantitative information of financial nature to both management and other users so that they can take a proper decision about the business.Management is answerable to the investors about the company’s state of affairs. The system in which financial transactions of an organization for a particular period are recorded to know the operating results and the financial position of that concern to analyze and communicate the same to interested users is called Accountancy.It helps to present and explain income, expenditure, profit-loss, and assets-liabilities of a particular period and helps the management and investors to be provided with necessary information and statements.This exchange brings financial changes among the participants and everyone may have the curiosity to know the effects of financial changes and results Accountancy can answer these sorts of queries.Generally Accepted Accounting Principles is established by the Financial Accounting Standards Board (FASB) and Securities Exchange Commission (SEC).Accounting activities may occur within or outside the organization.With time human beings gradually started their social lives and started keeping their accounts by marking ticks on walls, making rope-knots and using various symbols.From the financial point of view, an account means a statement of events measurable in terms of money or money’s worth.But, Accountancy has not yet attained its perfection. Filing of Returns . accounting - the occupation of maintaining and auditing records and preparing financial reports for a business Accounting history dates back to ancient civilizations in Mesopotamia, Egypt, and Babylon. And they must be filed timely or the y may not be considered as filed. Pages and pages of raw data are of little use to an organization for decision making. Accounting helps in doing so by means of comparison. Accounting definition is - the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results; also : the principles and procedures of this system. Durch die Offenlegung bestimmter Kennzahlen werden zudem wichtige Informationen an externe Kapitalgeber weitergegeben. Usually the frequency of these reports is quarterly and there is one annual report which summarizes the performance of all four quarters.
Merchants not only needed to track their records but sought to avoid bankruptcy as well.To illustrate double-entry accounting, imagine a business sends an invoice to one of its clients.