Accounting or accountancy is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations. 1✓Nature and Scope of Financial Accounting: The nature and scope .of accounting is described in the traditional definition of amounting given 1961 by the AICPA as Accounting  is the art of recording, classifying and sum marising significant manner  and in terms of  money transactions and event with are part at least, of a financial and interpreting the result thereof.2✓Identifying the Transaction and Events: Accounting identifies transaction and event, which can be expressed ion term of money and bring change in the financial position of a business unit. An event (whether internal or external ) is a happening of a consequence to an entity (e.g, use of raw material for production ) An entity means an economic unit that performs economic activities (e.g, Birla Industries Ltd. TISCO).3✓Measuring the identified Transaction and Events:  Accounting measures the transaction and events in term of money.4✓Recording: It is the process of entering the transaction and events in the books of original entry in the chronological manner e.g, date wise.5✓Classifying: It is the process of posting of entries in the ledger so that transaction of similar type are accumulated at one place.6✓Summarizing: It is concerned  with the preparation of Financial Statement such as Income Statement, Balance Sheet and Cash Flow Statement.7✓Analyzing: It is concerned with the establishment of relationship between the various item or group of items taken from Income statement or Balance Sheet or both. Its purpose is to identify the financial strengths and weakness of the enterprise. It provides the basis for interpretation.8✓Interpreting: Interpreting is the last stage of accounting process. It is concerned with explaining the meaning and significance of the relationship established by the analysis. In fact, interpretation is the main function of accountant in the present condition since the routine work of recording, classifying and summarizing business transaction business transaction can be easily handled by the electronic devices like computers.9✓Communicating: It is concerned with the transmission of summarized, analyzed and interpreted information to the user to enable them to make reasoned decisions.✓𝙊𝘽𝙅𝙀𝘾𝙏𝙄𝙑𝙀𝙎 𝙊𝙁 𝘼𝘾𝘾𝙊𝙐𝙉𝙏𝙄𝙉𝙂 :–✓𝗧𝗢 𝗸𝗲𝗲𝗽 𝘀𝘆𝘀𝘁𝗲𝗺𝗮𝘁𝗶𝗰 𝗮𝗻𝗱 𝗰𝗼𝗺𝗽𝗹𝗲𝘁𝗲 𝗿𝗲𝗰𝗼𝗿𝗱𝘀 𝗼𝗳 𝗮𝗹𝗹 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘁𝗿𝗮𝗻𝘀𝗮𝗰𝘁𝗶𝗼𝗻𝘀.✓𝗧𝗼 𝗔𝘀𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝗣𝗿𝗼𝗳𝗶𝘁 𝗼𝗿 𝗟𝗼𝘀𝘀.✓𝗧𝗼 𝗔𝘀𝗰𝗲𝗿𝘁𝗮𝗶𝗻 𝘁𝗵𝗲 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗽𝗼𝘀𝗶𝘁𝗶𝗼𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀.✓𝗧𝗼 𝗽𝗿𝗼𝘃𝗶𝗱𝗲 𝗶𝗻𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝘁𝗼 𝘃𝗮𝗿𝗶𝗼𝘂𝘀 𝗴𝗿𝗼𝘂𝗽𝘀 𝗮𝗻𝗱 𝘂𝘀𝗲𝗿𝘀.✓𝗧𝗼 𝗳𝗮𝗰𝗶𝗹𝗶𝘁𝗮𝘁𝗲𝘀 𝗗𝗲𝗰𝗶𝘀𝗶𝗼𝗻 𝗠𝗮𝗸𝗶𝗻𝗴.✓𝗧𝗼 𝗠𝗲𝗲𝘁 𝗟𝗲𝗴𝗮𝗹 𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀.