Accounting is the art of Recording, classifying and Summarising in terms of money transactions and events of financial and interpreting the result thereof.
What is the Accounting :-
Accounting is often referred to as language of Business. The primary aim of a language is to serve as a means of communication. Accounting is used to communicate financial and and other information to people, Organization
Goverment etc., about various aspects of business and non business entities,
Accounting information is used when Mr. A applies for a loan at a bank or when a submits his Income tax return. Business enterprises use accounting for their day-to-day activities and to report the result of these activities to their owners, creditors, employees, and Goverment agencies.
The Accounting is, therefore, also an information system. in today's society.
Defination of Accounting :-
According to L.C.Copper, Book keeping may be describeed as the science of recording transaction in money or money's worth in such a manner that at any subsequent date, their nature and effect may be clearly understood, and that, when required, a combined statement of their result may be prepared".
According to R.N Carter Book keeping is the science and art of correctly recording books of account so all those typ of business transactions that result in the transfer to mopney or money's worth".
The most acceptable one is that giving by American Institute of Certified Public Accountant ( AICPA) Committee on technology, According to AICPA "Accounting is the art of recording, classifying and summarizing in the significiant manner and terms of monety,transaction and Events.
According to A.H Rosenkampff. The defination of accounting is that, The book-keeping is the art of recording business transactions in a systematic manner".
Note :- This post is to be used for information purposes only and and doesn't constitute legal business, each person should consult his own attorney.
Comments
Post a Comment