Question

Q. 1 What do you mean by the term accounting?

Answer 1

It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity.
Accounting provides information on the
1. resources available to a firm,
2. the means employed to finance those resources, and
3. the results achieved through their use.