Accounting is to ascertain profit or loss

The purpose of accounting is to ascertain profit or loss during the specified period, to show financial condition of the business on a particular date and to have control over the firm's property. Such accounting records are required to be maintained to measure the income of the business and communicate the information so that it may be used by the manager or the Business owner and other parties. Accounting is a discipline which records, classifies, summarises and interprets financial information about the activities of a concern so that intelligent decisions can be made about the concern. 

The American Institute of Certified Public Accountants has define the Financial Accounting as "the art of recording classifying and summarising in a significant manner and in term of money transaction  and event which in part, at least of a financial character, and interpreting the result thereof."  


The American Accounting Association defines accounting as "the process of identifying, measuring  and communicating economic information to permit informed judgment and decisions by users of the information." 

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