Functions of Accounting

Accounting is an important tool for businesses and individuals to record, summarize, and analyze financial transactions. The functions of accounting include:

1. Measurement
Accounting measures financial transactions and events in terms of money. This helps in recording and summarizing financial information in a systematic manner.

2. Recording
Accounting records financial transactions and events in a chronological order in books of accounts such as journals and ledgers.

3. Classification
Accounting classifies financial transactions and events into different categories such as assets, liabilities, income and expenses, which helps in understanding the financial position of the business.

4. Summarization
Accounting summarizes financial information in financial statements such as income statement, balance sheet, and cash flow statement, which provide an overview of the financial performance of the business.

5. Analysis
Accounting analyzes financial information to identify trends, patterns, and relationships, which helps in decision making.

6. Interpretation
Accounting interprets financial information to make it understandable to different users such as investors, creditors, and managers.

7. Communication
Accounting communicates financial information to different users through financial reports, which helps in making informed decisions.

Functions of Accounting except Ledger Posting

Ledger posting is a part of the recording function of accounting, which involves transferring financial information from journals to ledgers. Although ledger posting is an important function of accounting, it is not considered a separate function on its own. Therefore, the correct answer is option 'D'.

Ledger posting is one of the process of book keeping so it is not considered as the function of accounting