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."
Really cool post! This was exactly the same accounting & bookkeeping thing that I'm looking for our small firm that we were trying to find out more about our own industry. Thanks for putting this great blog! If you are looking for accounting system for your business then I would suggest you visit once at Best Accounting Tools & software's for every business.
ReplyDelete