What is Accounting

Accounting is an art of recording,classifying and summarizing,reporting and analyzing the financial data or transactions in systematic manner,in simple words it refers to the process of  keeping or maintaing the financial records.

                                             OR                          "it is a systematic process of identifying  recording,measuring,classifying,veryfing,summarizing,interpreting and communicating financial information.It reveals profit or loss given by period,and the value and nature of  a firm's assets,liabilities and owner's equity.

                                                                       Another simple words"accounting is information science used to collect,classify,and manuplate financial data for organisations and individuals".
                        While the term accountancy refers to the duties which consist of  book keeping,accounting,auditing  etc or job/profession of an accountant.

Recording: Accounting refers to the recording of  financial transactions which includes financial documents like revenue(invoice or Sales receipt),voucher etc.

Classifying: accounting classifies transactions in such  systematic manner that which is useful  for both internal & external Businessmen.

Summarizing: Accounting frees yo from these repetitive tassks by calculating  and summarizing  hundreds or thousand of individual transactions and generating  reports to satisfy managerial,governmental,investing,or banking needs.Based on generally accepted  standards,these reports are  powerful tools to help the businesswner,accountant,banker,or investor analyze the result s of their operations.

Accounting provides innformation on the:
1: Resources available to the firm,

2: The means employed to finance those resources,
3: The result achieved through the use.