Question

Define accounting.

Answer 1

Accounting is the process of identifying, measuring, recording, classifying of the transactions then summarising, interpretating such information and then communicating the required information relating to the economic events of an organisation to the users of the business.

Accounting is the language of the business as it reveals the outcome of various operations of the business. Accounting helps the users to know about the financial position of the business and how much profit or loss an organisation is making.

Accounting considers only the Monetary transaction.