Question

Describe the role of accounting in the modern world.

Answer 1

Accounting is not an end itself; it is a means to an end.

For centuries, the role of accounting has been changing with the changes in economic development and increasing societal demands.

Now, in the present era, there are number of transaction in business and it become very much difficult to remember all the transaction.

Accounting help in describing and analyzing a mass of data of an enterprise through measurement,classification and summarisation and reduces those data into reports and statements, which show the financial condition and results of operations of that enterprise.Hence , it is regarded as a language of business.

According on the other hand also performs the service activity by providing quantitative financial information that helps the users in various ways.

Accounting as an information system collects and communicates economic information about an enterprise to a wide variety of interested parties. However, accounting information relates to the past transactions and is quantitative and financial in nature, it does not provide qualitative and non-financial information.

Thus, we can say that accounting is used as a means to achieve the objectives of the business. It helps the persons interested in many ways.