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Accounting Science or Art

Accounting is both an art and a science. As a science, accounting follows systematic and organized methods to study and understand the financial status of an entity through observation, identification, and analysis. However, accounting also involves creative judgment and skill in applying established accounting principles and rules, making it an art. Overall, accounting draws on both scientific processes and artistic interpretation to measure and communicate the financial activities and position of a business.

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anchal kumar
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3K views3 pages

Accounting Science or Art

Accounting is both an art and a science. As a science, accounting follows systematic and organized methods to study and understand the financial status of an entity through observation, identification, and analysis. However, accounting also involves creative judgment and skill in applying established accounting principles and rules, making it an art. Overall, accounting draws on both scientific processes and artistic interpretation to measure and communicate the financial activities and position of a business.

Uploaded by

anchal kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Accounting is art as well as science which systematical process that

identifies, records, classifies and communicates the economic facts and


figures of an organization.

Accounting is both art and science, it follows the scientific path to find,
present financial findings in a structured way, its art for giving creative
judgment.

At some point of learning Accounting or in your career as an accountant,


we all faced a common but intriguing question;

Is accounting is an art or a science?

And opinions are divided, some accountants believe it is a science and


some say it is an art. I think that accounting is both art and science.

Let’s find out whether accounting is an art and/or science.

Accounting is a science
Accounting is the science of recording and presenting the financial data of
an economic entity by observing, detecting, investigating, and identifying
the economic events via established collecting, testing, analyzing and
presenting methods.

Accounting; like science follows a systematic and organized path to


understanding the economic status of the entity.

Science is obtaining knowledge about a systematic pattern including


observation, study, practice, experiments, and investigation.

Like Science; Accounting requires gaining knowledge about the economic


status of an entity by systematic study.

For a scientist; to reach an acceptable conclusive result on a particular


matter or topic requires identifying recording, measuring, researching it.

An accountant finalizes the economic results by identifying, analyzing,


classifying using the method of the double-entry
bookkeeping accounting system.
So, Accounting is a science that includes comprises of rules, principles,
concepts, conventions, and standards in science.

Accounting can be considered an art because it requires creative judgment


and skills. In order to perform accounting functions well, discipline and
training is required.

Accounting is an art
The term “Art” means a diverse range of human activities and study of
these activities but most often misused or misunderstood to refer to
painting, film, photography, sculpture, and other visual media.

Art is using the skills or techniques of any field.

We can say that art is the study of the implementation of techniques and
methods. Accounting is an art because it presents the financial findings by
following and implementing a universally accepted method (GAAP).

Art is the study of implying scientific method to practical use. And


Accounting is an art as the established rules and principles of
accounting is applied in the bookkeeping process of an economic entity.

Views and thoughts about whether accounting is an art or science differ


from accountant to accountant.

Processes and methods used in accounting can be underlined as scientific,


and the decisions and estimation making can be classified as art.

The rules and principles are the science part of “accounting” and choosing
the way to use them are considered as art.

Accounting can also be considered a science because it is a body of

knowledge, but since the rules and principles are constantly changing and

improving, it is not considered an exact science.


The American Institute of Certified Public Accountants (AICPA) defines

accounting as: "the art of recording, classifying, and summarizing in a

significant manner and in terms of money, transactions and events which

are, in part at least of financial character, and interpreting the results

thereof".

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