1. What do you mean by Accounting ? Which activities are included in it?
Answers
Answer:
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities.
Answer:
The analysis and reporting of financial and other information on activities, in which the analysis is conducted by the persons or departments responsible for those activities. Activity accounting allows those persons or departments to take credit or blame for the good and bad decisions made over the period of time indicated in the accounting statement. It is used especially in decentralized organizations. Activity accounting is also called responsibility accounting or profitability accounting.An accountant writing with a huge pen.
What is Accounting and Why is it Important For Your Business?
By Ryan Smith on September 19, 2019
Contents
A simple definition of “accounting”
Accounting vs bookkeeping
The accounting cycle
Financial statements
Generally accepted accounting principles (GAAP)
The different types of accounting
Why accounting matters for your small business
What an accountant does
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A simple definition of “accounting”
Accounting is how your business records, organizes, and understands its financial information.
You can think of accounting as a big machine that you put raw financial information into—records of all your business transactions, taxes, projections, etc.—that then spits out an easy to understand story about the financial state of your business.
Accounting tells you whether or not you’re making a profit, what your cash flow is, what the current value of your company’s assets and liabilities is, and which parts of your business are actually making money.