What are the attributes (features) of accounting
Answers
Answer:
Features of accounting
1. Recording
Accounting is the art of recording of transactions. Only business relative transactions are recorded in which money is mentioned. All transactions are recorded in detail. Both journal and subsidiary books are used for this.
2. Classifying
Accounting’s main feature is also classifying all business transactions. Accounting makes group of all similar accounting entries in one place. For example all receipt and payment will be shown in cash book. So, all transactions are collected under one common head . This system is also called classification of transaction. This process is completed by opening accounts in books. These books are called ledger.
3. Summarizing
Summarizing is the art of showing business results in summarize form .After this, it can use for all the interested parties. This feature tells about to financial statement. One is Trading and profit and loss account and other is Balance Sheet.
4. Interpreting
By interpreting, we can know whether the position of profitability is good or bad. By knowing this, we can estimate business’s performance.
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