Definition of Accounting

 

What is Accounting?

The Accounting term is defined by many famous accounting international book writers. 

According to Weygandt and Kieso '' Accounting is the process of identifying, recording, and communication the economic events of the organization( business or non business) to provide information for interested parties or users "

According to E.L Kohler," Accounting is the recording and reporting of transaction".

Above the discussion we know accounting is identified and recording the economic transactions and communicate the interested parties . Accounting communicate the interested parties to provide information by different statements.

The different financial statements are given below

1. Income statement: income statement provide the loss or profit information during the accounting period

2.Balance sheet: Balance sheet provides the financial position information during the accounting period.

3. Cash flow statement: To provide information the change of the cash in the business.