Definition of Accounting:
Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing, and reporting these transactions to oversight agencies, regulators, and tax collection entities. The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows. .
Accounting is one of the key functions for almost any business. It may be handled by a bookkeeper or an accountant at a small firm, or by sizable finance departments with dozens of employees at larger companies. The reports generated by various streams of accounting, such as cost accounting and managerial accounting, are invaluable in helping management make informed business decisions. .
Practice and body of knowledge concerned primarily with methods for recording transactions, keeping financial records, performing internal audits, reporting and analyzing financial information to the management, and advising on taxation matters.
It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firms assets, liabilities and owners equity.
Accounting provides information on the resources available to a firm, the means employed to finance those resources, and the results achieved through their use.
See also: List of Key Accounting Terms and Definitions.
The action or process of keeping financial accounts.
Synonyms of Accounting
Account, Account rendered, Accountancy, Acta, Analysis, Annual, Audit, Auditing, Automatic electronic navigation, Bookkeeping, Braking, Brief, Bulletin, Census, Census report, Computation, Coordination, Cost accounting, Cost system, Cost-accounting system, Counting, Dactylonomy, Double-entry bookkeeping, Election returns, Enumeration, Fact distribution, Foliation, Forecasts, Inspection, Inventorying, Manipulation, Measurement, Minutes, Monetary arithmetic, Nonlinear calibrations, Numbering, Numeration, Output measurement, Pagination, Proceedings, Processing, Quantification, Quantization, Record keeping, Report, Returns, Single-entry bookkeeping, Statement, Steering, Supersonic flow detection, Tally, Tallying, Telling, The record, Transactions, Yearbook, Financial affairs, Money matters, Pecuniary matters, Fiscal matters, Economics, Money management, Commerce, Business, Investment, Banking, Accounting
How to use Accounting in a sentence?
- The accounting at the firm was so mismanaged that the threat of bankruptcy was suddenly becoming a very real possibility.
- Professional accountants follow a set of standards known as the Generally Accepted Accounting Principles (GAAP) when preparing financial statements.
- A bookkeeper can handle basic accounting needs, but a Certified Public Accountant (CPA) should be utilized for larger or more advanced accounting tasks.
- When the accounting had been done, it was found that a small amount of money was missing, probably due to a faulty ledger entry somewhere along the line.
- An investigation into suspected false accounting.
- It was very difficult for the library to keep an accurate accounting of all their electronic books and media because the software was so complicated.
- Two important types of accounting for businesses are managerial accounting and cost accounting. Managerial accounting helps management teams make business decisions, while cost accounting helps business owners decide how much a product should cost.
- Regardless of the size of a business, accounting is a necessary function for decision making, cost planning, and measurement of economic performance measurement.
Meaning of Accounting & Accounting Definition