ACCOUNTING

Accounting is something that affects people in their personal lives just as much as it affects very large business. We all use accounting ideas when we plan what we are going to do with our money. We have to plan how much of it we will spend and how much we will save. We may write down a plan, known as a Budget or we may simply keep it in our minds. In simple language accounting is therefore connected with Recording of data, Classifying and summarizing data, communicating what has been learned from the data.
It is very easy to understand the accounting if we properly understood book keeping. Bookkeeping as being concerned with the work of entering information into accounting records properly. However, accounting would probably not have meant much to the reader at that stage in his/her studies. The following is the most widely used definition “The process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.