What Is Meaning Of Accounting

17 Answers

Alex Wheeler Profile
Alex Wheeler answered
If you think accounting, you usually think of smartly dressed business men who are employed by equally smartly dressed men to manage their money and balance up their finances.  But, this is only one side of the definition of accounting.

The dictionary definition of accounting is the theory and system of setting up, maintaining, and auditing the books of a firm; the art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overheads etc.

In simpler terms, accounting is the way in which companies or even individuals keep up to date with their finances so that they are aware of their money and how it is being spent or saved. Accounting is not just for the professional businessmen of the financial world, it can also mean when an individual is keeping track of his or her finances through recording their incomings and outgoings. This could be in a book especially designed to record figures, on a spreadsheet on the computer or simply in a notebook.

When it comes to company’s finances, accounting becomes quite a structured, strict business. From time to time companies have auditors visiting to check if their accounts are up to date, accurate and reliable. This makes sure the company are not trying to commit tax evasion or fraud.

The word accounting dates back to the 14th century when the word meant ’reckoning of number’ which is basically a simplified definition of the modern day meaning.
Anonymous Profile
Anonymous answered
Accounting is a practice of recording, classifying, summarizing, analysing and interpreting the financial transactions and communicating the results thereof to the persons interested in such information.

Functions of Accounting;
1. Recording the business transactions of financial character in the books. (preparation of first book called 'Journal')
2. Classifying the recorded data of similar nature in one place (preparation of second book called 'Ledger')
3. Summarising the classified data to know the result of business operation and its financial position (preparation of Trial balance, Income statement and Balance sheet)
4. Analysis and interprets the summarised data in such a way to get a meaningful judgement about the operational result and financial position of the business)
5. Communicating the interpreted data to the various users such as Owners, Investors, Bank, etc)

Objective of Accounting:
A. To maintain record of the business
b. To calculate profit or loss
c. To know financial position
d. To provide financial information to various users
amber Jhon Profile
amber Jhon answered
Accounting means a system of recording, verifying and reporting the transactions of the company into the books of accounts(ledgers). These transactions are categorized as assets, liabilities, revenues, expenses and shareholders' equity in the books of accounts. Accounting can really help the lenders, managers, tax authorities and the investors to make decisions. It can also help the accountants to ensure the fair and accurate information given to the users like investors. Therefore, accounting can play an important role in enhancing the transparency of the information and it provides standardized ways of recording transactions.  

Anonymous Profile
Anonymous answered
ACCOUNTING is an art of recording, classifying, summarizing in a significant manner in terms of money. Transactions and events which are in a part of at least in financial statement and there result there of.
dony love Profile
dony love answered
Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions including computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial performance, tax strategy, and health care benefits management.

Thank You
Anonymous Profile
Anonymous answered
 accounting is  a  part  in  ayccountenc  it  has  lot  of   businees  transaction  in the  books  of  accounts 
Anonymous Profile
Anonymous answered
Accounting is a language of a business.
frank bryceson Profile
frank bryceson answered
Accounting  is  the  process of  identifying , measuring and  communicating economic information to permit informed judgement and  decision by user  of  the  information.
Anonymous Profile
Anonymous answered
Accounting is the science of recording and classifying business transactions and events primarily of a financial character ; and the art of making significiant summaries;analysis interpretation of those transaction and communicating the result to person who must make decisions or form judegement
Anonymous Profile
Anonymous answered
Accounting is a systematic practice of identifying, recording, measuring, classifying, summarizing, interpreting and communicating the financial transactions (In terms of Money) of a business firm or an individual following a set of rules and regulations. The function is basically carried to:I) maintain record of the business ii)Evaluate the performance of a business iii)Know the financial position of the business firm iv)control business activity effectively v)provide business information to the stake holders of the entity.-Rashik Bhandari MBA-KFA
Anonymous Profile
Anonymous answered
I want to become a Management Accountant and my qualification is CIMA part qualified. So Please suggest me how to write my career objective as a Management Accountant.
Anonymous Profile
Anonymous answered
I need material and clues for my project work in school. "keeping accounting record in small scale business enterprise in nigeria
Anonymous Profile
Anonymous answered
Accounting means a system of recording , These Transactions are categorized as Fixed Assets, Liabilities, Revenues, Expenses, Share Equity into the books of Accounts. Accounting can help the Investors, Tax Authorities to take decision. Accounting play an Important Role in Any Organization.
Anonymous Profile
Anonymous answered
Accounting means a system of recording , recording & reporting the transactions of the company into the books of the accounts.
These Transactions are categorized as Fixed Assets, Liabilities, Revenues, Expenses, Share Equity into the books of Accounts.
Accounting can help the Investors, Tax Authorities to take decision.
Accounting play an Important Role in Any Organization.
Anonymous Profile
Anonymous answered
Accounting is a means to an end, not an end by itself. Critically examine on the validity of this statement

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