ACCOUNTING
According to the American Institute of Certified Public Accounts (AICPA),
accounting is “An art of recording, classifying and summarizing in a significant
manner and in terms of money, transactions and events, which are in part at
least, of a financial character, and interpreting the result thereof.”
The definition contains the functions of accounting and enumerates the
activities of the accountant.
1. Identify which data are related or relevant to the decisions to be made.
2. Analyze and process the relevant data, and
3. Transform it in to information that can be used in making better
decision.
It is a discipline which records, classifies, summarizes and interprets the
business transactions. It includes designing, analyzing and interpretation of
business records.
It may also be defined as “A branch of science which facilitates data relating
to the smooth functioning and analysis of activities of an enterprise.’’
Accountancy
It is the art and science of accounting. Accountancy is the science of
maintaining accounts and analyzing them. It is the practice of an accountant.
Accountancy includes all subjects of an accountant. It is the application of
book- keeping and accounting.
Objectives of Accounting
1. Maintenance of relevant records : Systematic records of business
transaction are very essential to any business. Accounting facilitates to
keep the relevant and systematic records of business transactions.
2. Determination of the result of the business : The result of the business
is either profit or loss. Profit and loss can be ascertained by the
preparation of Trading and Profit and Loss Account at the end of the
period.
According to the American Institute of Certified Public Accounts (AICPA),
accounting is “An art of recording, classifying and summarizing in a significant
manner and in terms of money, transactions and events, which are in part at
least, of a financial character, and interpreting the result thereof.”
The definition contains the functions of accounting and enumerates the
activities of the accountant.
1. Identify which data are related or relevant to the decisions to be made.
2. Analyze and process the relevant data, and
3. Transform it in to information that can be used in making better
decision.
It is a discipline which records, classifies, summarizes and interprets the
business transactions. It includes designing, analyzing and interpretation of
business records.
It may also be defined as “A branch of science which facilitates data relating
to the smooth functioning and analysis of activities of an enterprise.’’
Accountancy
It is the art and science of accounting. Accountancy is the science of
maintaining accounts and analyzing them. It is the practice of an accountant.
Accountancy includes all subjects of an accountant. It is the application of
book- keeping and accounting.
Objectives of Accounting
1. Maintenance of relevant records : Systematic records of business
transaction are very essential to any business. Accounting facilitates to
keep the relevant and systematic records of business transactions.
2. Determination of the result of the business : The result of the business
is either profit or loss. Profit and loss can be ascertained by the
preparation of Trading and Profit and Loss Account at the end of the
period.
