Entity: ACCOUNTING-
Accounting is the process of recording, categorizing, and analyzing company transactions to generate financial statements and inform business decisions.
ACCOUNTING-
Etymology
The term 'accounting' originates from the Middle English word 'accounten,' which means to count or calculate.
Definition
Accounting is the process of recording, categorizing, and analyzing company transactions to generate financial statements and inform business decisions. It involves setting up, maintaining, and auditing the books of a firm, as well as analyzing the financial position and operating results of a business house.
Historical Context
Accounting has a long history dating back to ancient civilizations such as Mesopotamia and Ancient Egypt. Over time, accounting practices have evolved to meet the changing needs of businesses and regulatory requirements.
Cultural Significance
Accounting is commonly referred to as the 'language of business' as it serves as a means through which information about a business entity is communicated. It plays a crucial role in decision-making, financial reporting, and ensuring transparency and accountability.
Related Concepts
- Financial Accounting
- Managerial Accounting
- Auditing
- Tax Accounting
See Also
The theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.