Question

what are the sailent feature of Accounting 11​

Answer 1

Answer:

Financial Accounting is the process in which business transactions are recorded systematically in the various books of accounts maintained by the organization in order to prepare financial statements

Answer 2

ANSWER :

Accounting is a man-made activity which has evolved over a period of time. It is a systematic exercise carried on for the purpose of recording, summarizing and interpreting the results for the users of the information.

The salient features of Accounting are as follows :-

• [1] Accounting is an art : Accounting is considered as an art of recording business transactions in a systematic way. Because it requires the application of some special knowledge comprisinb of some accepted principles as well as theories.

• [2] Identification of financial events : Accounting is concerned with only those events which are financial in nature and these events are termed as economic activity. In the daily course of business operations, a number of events take place in the business. But accounting is concerned only with the economic or financial activities of the business. It means, those events of business which can be measured in financial terms, i.e., in terms of money, are identified for the purpose of recording in accounting.

• [3] Recording of business transactions : Accounting records only the business transactions according to some specified rules and principles. Books of accounts to be maintained depends on the nature and size of the business. Only those transactions and events are recorded in accounting which are of a financial character. There are many events which are very important for the business, but are not of a financial character and hence those events are not recorded in books of accounts.

• [4] Recording in terms of money : Another important feature of accounting is to record in terms of money. Each and every transaction is recorded in the books of accounts in terms of money only. Transactions which can not be measured and expressed in terms of money, are not recorded in accounting.

• [5] Classifying and summarizing the business informations : Accounting classifies and summarizes the business transactions. Classification is the procsss of grouping the transactions or events of the same type or similar nature in one place which is done in accounting by the preparation of ledger accounts. Again, summarizing involves the preparation of reports and statements from the classified data in a manner which is understandable to the users of accounting information.

• [6] Interpretation of the result : In accounting, the result of the business are presented in such a manner so that the various groups of parties interested in the business can have full information about the profitability as well as the financial position of the business. This is done by preparing Trading and Profit and Loss Account and the Balance Sheet of the business.