Meaning and Definition of Accounting
Accounting is considered as a Managerial tool for planning and control. Accounting provides a rich source of information to be used as a basic of management actions & decisions.
Meaning & definition of Accounting:
Accounting has rightly being turned as language of Business. The main function of language is to serve as a means of communication. Accounting also serves this function. Accounting communication the results of business operation to parties associated with the business such as proprietors, creditors, investors, consumers, govt & other agencies. Evaluation of accounting is spread over several countries and during this period certain rules, procedures & conventions have come to be accepted as useful.
Accounting Definitions:
According to the committee on the terminology of the “American Institute of Certified Public Accounting” [AICPA]
“Accounting is the art of recording, classifying and summarising, in significant manner and in terms of money transactions and events which are, in part at least of financial character and interpreting the result thereof”
According to the” American Accounting Association” [AAA]
“The process of identifying, measuring and communicating economic information to permit informed judgement and decisions by users of the information”
Source: A/c Books & Notes
Tags: AAA, Account, accountant, accounting, Accounting Management, accounts, AICPA, Definition of Accounting, Difinition, finance, Management, Meaning
By: Management Duniya
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