Question

scope of accounting
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Answer 1

The scope of Accounting is wide and extends in Business, Trade, Government, Financial institutions, individuals and families and every other arena. 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. Financial transactions occur all along in business organizations with a government office, non-trading concerns, and professionals.

The functions of Accounting are to keep accounts of those financial transactions. Even accounts are to be kept in case of individuals and families.

All financial activities of individuals, business concerns, non-trading concerns, government, semi-government organizations, doctors, advocates, accountants and other professionals come under the scope of Accounting.

In fact, where financial transactions occur there is the importance of Accounting. But the necessity of Accounting is felt sharply in keeping accounts of business concerns.