Question

Explain accounting scope

Answer 1

1.    Business

Accounting is widely applicable in the business sector. Today, in the modern world, most of the people are engaged in business sector and all businessmen follow Generally Accepted Accounting Principle (GAAP) to find out profit, loss and financial position of business firm.


2.    Government organizations

Though, Government organizations do not follow Generally Accepted Accounting Principle (GAAP), its keep systematic records of all transactions in order to find the position of public fund.


3.    Non-Government organizations

Non-government and service organizations such as NGOS, INGOs, Red Cross Society, SOS etc which plays a vital role in the development of nation also uses accounting. The accounting system used in these organizations are called fund accounting.


4.    Individuals

Individuals also perform economic activities to earn their livelihood. They also perform some form of accounting tos draw financial information for making personal economic decision.



Read more: http://notes.tyrocity.com/scopes-of-accounting/#ixzz4JvTgTPoX 
Follow us: tyrocity on Facebook

Answer 2

The scope of Accounting is wide and extends in business, trade, government, financial institutions, individuals and families and every other arena. ... The functions of Accounting are to keep accounts of those financial transactions. Even accounts are to be kept in case of individuals and families.