Functions of Accounting by Accounting Principles Board:

The Accounting Principles Board (APB) of the American Institute of Certified Public Accountants (AICPA) was a standard-setting organization that existed from 1959 to 1973. The APB issued Accounting Principles Board Opinions (APBOs) which provided authoritative guidance on generally accepted accounting principles (GAAP) in the United States.

The APB enumerated the following functions of accounting:

1. Recording Financial Transactions
- Accounting involves the systematic recording of all financial transactions of a business. These transactions may include purchases, sales, expenses, and revenues.

2. Classifying Financial Transactions
- Accounting involves the classification of financial transactions into meaningful categories such as assets, liabilities, equity, income, and expenses.

3. Summarizing Financial Transactions
- Accounting involves summarizing financial transactions into financial statements such as the income statement, balance sheet, and cash flow statement.

4. Interpreting Financial Information
- Accounting involves the interpretation of financial information to help stakeholders make informed decisions. This may include analyzing financial ratios, trends, and other key performance indicators.

5. Providing Financial Information to Stakeholders
- Accounting involves providing financial information to stakeholders such as investors, creditors, employees, and government agencies. This information is typically presented in financial statements, reports, and disclosures.

In summary, the Accounting Principles Board of the American Institute of Certified Public Accountants enumerated the functions of accounting as recording, classifying, summarizing, interpreting, and providing financial information to stakeholders. These functions are essential for businesses to make informed decisions, comply with regulations, and communicate their financial performance to stakeholders.