“Accounting is the art of recording, classifying, and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the result thereof.
Accounting procedure can be basically divided into two parts:
(i) Generating financial information and
(ii) Using the financial information.
The objectives of accounting can be given as follows:
(i) Systematic recording of transactions
(ii) Ascertainment of results of above recorded transactions
(iii) Ascertainment of the financial position of the business
(iv) Providing information to the users for rational decision-making
(v) To know the solvency position
The main functions of accounting are as follows:
(iv) Comparison & Evaluation
(vi) Government Regulation and Taxation
Objectives of Book-keeping:
(i) Complete Recording of Transactions and
(ii) Ascertainment of Financial Effect on the Business
The various sub-fields of accounting are:
(i) Financial Accounting
(ii) Management Accounting
(iii) Cost Accounting
(iv) Social Responsibility Accounting
(v) Human Resource Accounting
The various users of accounting information:
(iv) Suppliers and Creditors
(vi) Government and their agencies
Accounting is closely related with several other disciplines and thus to acquire a good knowledge in accounting one should be conversant with the relevant portions of such disciplines.
An accountant with his education, training, analytical mind and experience is best qualified to provide multiple need-based services to the ever growing society. The accountants of today can do full justice not only to matters relating to taxation, costing, management accounting, financial lay-out, company legislation and procedures but they can delve deep into the fields relating to financial policies, budgetary policies and even economic principles.