Question

Q.3 Define Accounting.​

Answer 1

A process of work keeping financial account is called accounting

Answer 2

ANSWER :

★ 'Accounting' can be defined as a man-made activity of a systematic exercise carried on the purpose of recording, summarising and integrating the result of the users of the financial information.

$\: \: \: \: \: \: \: \:$ In business, the term 'Accounting' is conceived as a process that provides information on the financial condition and the transaction which have led to that status of the business. It is considered as a language of business.

❒ Different Definition of Accounting :-

• ✎ According to the Committee of Terminology of the American Institute of Accountant (later known as AICPA), "Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money, transaction and events which are, in part at least, of a financial character, and interpreting the result thereoff."

• ✎ The New York State Society of CPAs (NYSSCPA) defines 'Accounting' as the process "recording and reporting of financial transactions, including the organisation of the transaction, its recognition, processing and summarisation in the Financial Statements."

• ✎ According to the Institute of Chartered Accountants of India (ICAI), "Accounting may be defined as the process of recording, classifying, summarising, analysing and interpreting the financial transactions and communicating the result thereof to the persons interested in such information."

• ✎ The American Accounting Association defines 'Accounting' as the process of "identifying, measuring and communicating economic information to permit informed judgements and decisions by the user of accounts."

• ✎ According to Smith and Ashburne, "Accounting is a means of measuring and reporting the result of economic activities."