explain Scope of accounting
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The scope of Accounting is wide and extends in business, trade, government, financial institutions, individuals and families and every other arena. The accounting principle is used in every step. Many think the accounting scope is only limited to financial transactions of a business concern but in fact, it is not true. Accounting is essential for all types of business organizations, even for individuals and families.
From the above diagram, it is not difficult to realize that accounting data are processed collecting and preparing data adapting methods of various processes.
In a later stage, the report is prepared to evaluate accounting data. This report is prepared for external and internal uses. Roughly the areas where accounts are kept are described below in short.
