What Is The Nature Of Accounting?

The nature of accounting is based on what type of business it is. Accounting is art and science. It is a commodity. It is an economic entity.

Well accounting is defined as collecting, storing and classifying information and finding the end results. Accounting plays a major role in companies making various decisions, if there was no accounting there would be no way to find out if the company was making profit or how many debtors it had. Accountings role is to give a complete overview of a firm or company and reach a conclusion about its activities. The nature of accounting is financial and has to do with money. Hope this helps.

Accounting is the identification, measurement and communication of financial information about economic entities to interested persons (Kieso and Weygandt)
- Arose from the need to communicate financial information
- Not derived from first principles
- Financial Accounting Standards Board (FASB) is authoritative rule making body

Underlying Assumptions
Key Assumptions -
- Accounting entity
- Double entry
- Timing-matching principal
- Accrual accounting
- Historical cost

nature of accounting

Historical in nature..