Definition of accounting - Essay Example

Only on StudentShare

Extract of sample
Definition of accounting

Business profits and financial position. These are known as financial statements or profit and loss account and Balance sheet.With the help of analysis, useful information is obtained form financial statements. The users of the information then interpret the information derived. Such interpretation helps interested parties in taking prompt decisions. The whole process of recording, classifying, summarizing and interpreting is known as accounting. The art of recording, classifying, summarizing, analysing and interpreting the business transactions systematically and communicating business results to the interested users. These interested users may be owner himself of herself, creditors government, etc.; accounting is also viewed as discipline. It has its own principles, rules and concepts, which guide accountants in their accounting practices.The meaning of the word consistency is continuity in methods or practices. In accounting context, consistency means followers using the same accounting methods or practice year after year. You can also say that the methods followed for making accounting information is not altered generally during its life. A businessman fro example, follows the following practices or methods generally year after year:Machines and other fixed assets used in a business slowly decline in value over time. ...Show more


All recorded transactions, which are of the same type and nature, are grouped under one head. Cash sales, credit sales and sales to owner, etc., are grouped as total sales. Cash purchases, credit purchases etc., are classified as total purchases…
Author : miles31
Definition of accounting essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Definition of accounting"
with a personal 20% discount.
Grab the best paper

Related Essays

The Contribution of Academic Research to Accounting and Financial Regulation
Academic research has greatly contributed to the development of accounting and to the techniques of financial regulation. In particular, it has contributed much in the development of accounting principles and theory (Coetsee 2010, p. 1). The relationship between academic research and theory is two-way because the theories improved or forwarded by academic research have advanced accounting science and the science of financial regulation (Coetsee 2010, p.
5 pages (1250 words) Essay
Financial Accounting principles
It is a common experience for all of us that money must be spent carefully. If a person is careless in spending money, a day will come when he will be left with no money. Same holds true for a business firm or for a country as a whole. So as students we must try to understand the importance of maintaining accounts keeping international standards in mind.
7 pages (1750 words) Essay
The Generally Accepted Accounting Principles in the UK
The Generally Accepted Accounting Principles in the UK, or UK GAAP, are the overall body of regulation establishing how company accounts must be prepared in the United Kingdom. This includes not only accounting standards, but also UK company law. Accounting standards derive from a number of sources.
10 pages (2500 words) Essay
Is there is any differences between UK Accounting Ethics Standards and US Accounting Ethics Standards
The chief standard-setter is the Accounting Standards Board (ASB), which issues standards called Financial Reporting Standards (FRSs). The ASB is part of the Financial Reporting Council, an independent regulator funded by a levy on listed companies[1], and
10 pages (2500 words) Essay
Leased assets’ accounting treatment has been subjected for many discussions by accounting specialists and hence there are different views
4 pages (1000 words) Essay
identified the cost centers on the basis of per unit product produced and how each cost center is related to one another in the entire production process. As it was an engineering company, the chief accountant successfully divided the manufacturing and service of the firm into
9 pages (2250 words) Essay
Today, after the world gained globalization, this issue has been eradicated and guidance materials such as the International Financial Reporting Standards and the Generally Accepted Accounting Principles
4 pages (1000 words) Essay
Management accounting
They play different roles in the process of satisfying the needs of the stakeholders of a particular organization. This essay attempts to provide a clear understanding regarding the differences that exist between the management
4 pages (1000 words) Essay
Some contend that in the beginning many primitive societies, those that were in existent in the earliest days, developed the art of counting before
10 pages (2500 words) Essay
When I became a father, I faced the reality of taking care of my children. My support has been from being a role model, provider and mentor. In order for my children to grow well, I have been focused on channeling my efforts
1 pages (250 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email