Scribd
Upload
23 views1 page

Accounting: Document 3bsmdjkdndbd S

Accounting is the measurement, processing, and communication of financial information about economic entities such as businesses. It involves recording financial transactions, preparing financial statements, and facilitating financial reporting. The main fields of accounting include financial accounting, management accounting, auditing, tax accounting, and cost accounting. Accounting standards and practices are set by various organizations to ensure consistency and accuracy in financial reporting.

Uploaded by

Clarissa Teodoro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
23 views1 page

Accounting: Document 3bsmdjkdndbd S

Accounting is the measurement, processing, and communication of financial information about economic entities such as businesses. It involves recording financial transactions, preparing financial statements, and facilitating financial reporting. The main fields of accounting include financial accounting, management accounting, auditing, tax accounting, and cost accounting. Accounting standards and practices are set by various organizations to ensure consistency and accuracy in financial reporting.

Uploaded by

Clarissa Teodoro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

Document 3bsmdjkdndbd s

Accounting or accountancy is the measurement, processing, and communication of financial


and non financial information about economic entities[1][2] such
as businesses and corporations. Accounting, which has been called the "language of
business",[3] measures the results of an organization's economic activities and conveys
this information to a variety of users, including investors, creditors, management,
and regulators.[4] Practitioners of accounting are known as accountants. The terms
"accounting" and "financial reporting" are often used as synonyms.
Accounting can be divided into several fields including financial accounting, management
accounting, external auditing, tax accounting and cost accounting.[5][6] Accounting information
systems are designed to support accounting functions and related activities. Financial
accounting focuses on the reporting of an organization's financial information, including
the preparation of financial statements, to the external users of the information, such
as investors, regulators and suppliers;[7] and management accounting focuses on the
measurement, analysis and reporting of information for internal use by management. [1]
[7] The recording of financial transactions, so that summaries of the financials may be
presented in financial reports, is known as bookkeeping, of which double-entry
bookkeeping is the most common system.[8]
Even though accounting has existed in various forms and levels of sophistication
throughout many human societies, and the double-entry accounting system in use today
was developed in medieval Europe, particularly in Venice, and is usually attributed to the
Italian mathematician and Franciscan friar Luca Pacioli.[9] Today, accounting is
facilitated by accounting organizations such as standard-setters, accounting
firms and professional bodies. Financial statements are usually audited by accounting firms,
[10] and are prepared in accordance with generally accepted accounting principles (GAAP).
[7] GAAP is set by various standard-setting organizations such as the Financial
Accounting Standards Board (FASB) in the United States[1] and the Financial Reporting
Council in the United Kingdom. As of 2012, "all major economies" have plans
to converge towards or adopt the International Financial Reporting Standards (IFRS).[11]

You might also like