define accounting

Accounting is the systematic recording, reporting, and
analysis of financial transacions of a business.

The person
in charge of accounting is known as an accountant, and this individual is typically
required to follow a set of rules and regulations, such as the Generally Accepted
Accounting Principles (GAAP).

Accounting allows a company
to analyze the financial performance of the business, and look at statistics such as net
profit.

Accounting is a
service having two purposes: provide information about business, provide safeguard over
the assets of the
business

Accounting is a
process of: analyzing, recording, and summarizing, financial data of a particular
business activity.

There are two types of Accounting:
Financial Accounting and Management
Accounting.

Financial
Accounting Covers reporting results and financial position of a business.
Its primary task is not related to
provision of information towards improvement of business efficiency and its management,
but is to satisfy information needs of interested parties not involved in business
management. Only historical information is provided by financial accounting in the
strict forms of the reports.

Management
Accounting Covers provision of information to the management of the
business for business planning and controlling purposes. Includes not only historical,
but also future (forecasted) information. No strict form of the reports are
used.