Accounting- Definition
Accounting is an information system that processes the financial information and measures business activities and provides summarized information to the owner’s, investors, managers and other decision makers.
According to American Accounting Association (AAA), It is the process of identifying, measuring, communicating economic information to permit informed judgements and decisions by the users of information.
Accounting is considered as a language of business. It literally talks with you through the activities of the business.
Any business runs with an objective to earn and maximize profits. It is possible by taking correct and timely decisions by business owners and managers.
Owners and Managers make decisions on the basis of Financial information provided by Accounts Departments.
If you have any queries please share in the comment section below. I will be more than happy to assist you.
