Learning Materials For Accounting, Management , Finance And Economics.

Friday, October 30, 2009

Introduction Of Accounting


Concept And Meaning Of Accounting

Accounting may be defined as the systematic recording , summarizing and analyzing of financial transactions and reporting the results.The main purpose of accounting is to show the exact financial condition of the business .Accounting helps to ascertain profit or loss during a specified period.It also helps to have control over the firms property.Therefore accounting is the art of recording and classifying business transactions and events in monetary terms.In the recent years accounting is defined as the art of communicating financial information about a business entity to external and internal users. External users of accounting information are investors , creditors , consumers , research scholars , government etc. Internal users of accounting information means owners, management and employees.