FUNDAMENTALS OF ACCOUNTING What is accounting? Accounting may be defined as the process of identifying, measuring, recording and communicating financial information in order to permit users to make informed decisions or judgment by the users of the financial information. Accounting maybe referred by some authors as Book-keeping, which is the analysis, identification, measuring, classifying and recording of financial transactions in the books of accounts. Accounting maybe viewed as the language used in business and forms a common media through which users of accounting information can effectively communicate business matters and understand each other equally in a business. Accounting facilitates communication of the business records, transactions and summarizes results of business operations; forming the information of economic value to a business which forms the basis for judgment by the users. THE ACCOUNTING PROCESS Since accounting is a process, it ...
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