What is accounting?

What is Accounting (What is Accounting?)

What-is-Accounting

Accounting

The size of the modern business has become so wide that it contains hundreds of thousands of commercial and billions of business transactions. It is impossible to handle business ventures by remembering the details of these transactions. Therefore, the orderly record of these transactions is kept, their ordering knowledge and experimentation are called accountancy only. The practical form of accountancy can be called accounting. According to the American Institute of Certified Public Accountants (AICPA) 's accounting terminology, Bulletin says, "Accounting is the effect of writing, classifying and summarizing the behaviors and events that are at least part of the financial nature, effectively And the art of interpreting their results. "

According to this definition, accounting is an art, not science. This art is used for the recording, classification, condensation, and interpretation of scalable behavior and events in the currency of the financial nature.

Accounting is the only art of analyzing, summarizing, reporting and analyzing a business's financial transaction. The person taking charge of accounting is known as an accountant and the accountant's role is similar to a record-keeper. However, accounting is now considered to be a tool of management that provides valuable information about the future of the organization.

Smith and Ashburn presented the above definition with some improvement. According to him, 'Accounting is mainly the science of recording and classification of business transactions and events of financial nature and it is the art of analyzing, analyzing and interpreting the important transactions and summaries of those transactions and events, and communicating the results to those who are to decide. According to this definition, accounting is both science and art. But it is almost complete science, not a complete science.

Definitions of Accounting

1. In 1941, the American Institute of Certified Public Accountants (AICPA in brief) defined accounting as follows.

Accounting is the virtual art of presenting accounting, writing, classification, and abbreviations in important ways and in the case of money, transactions, and incidents that are at least part of the interpretation of any financial nature and related consequences.

2. In 1966, the American Accounting Association (abbreviated AAA) defined accounting as follows

Accounting information is the process of identifying, evaluating and communicating financial information to allow users to make decisions and inform decisions.