CHARACTERISTICS of accounting ?
Answers
1.Accounting is a nart.
2.Accounting helps in identification of financial events.
3.Accounting records business transactions.
4.Accounting helps in summarizing the information.
5.Accounting records the business transactions in terms of money.
Answer:
Identifying, documenting, measuring, classifying, verifying, summarizing, interpreting, and conveying financial information are all part of the systematic process known as accounting.
Explanation:
The main characteristic of accounting:
- Understandability.
- Relevance.
- Consistency.
- Comparability.
- Reliability.
- Objectivity.
Understandability
This indicates that accounting information should be expressed clearly in a way that users, who are typically presumed to have a reasonable understanding of business and economic processes, can grasp it.
Relevance
Accordingly, accounting data must help a user create, confirm, or possibly alter a view – typically in the context of making a decision (should I invest, should I lend money to this business?). Should I join this company's workforce?)
Consistency
This requires using accounting principles and treating related items consistently.
Comparability
This suggests that users will be able to compare comparable businesses within the same industry category and compare performance over time. The need for comparability is at the center of most of the work that goes into developing accounting standards.
Reliability
This suggests that the accounting information provided is accurate, thorough, and verifiable, and that nothing material has been omitted (e.g. by a potential investor).
Objectivity
According to this, accounting data is generated and reported in a "neutral" manner. It does not favor any single user group or special interest, in other words.