accounting-definition-and-concept

 

Concept of Accounting

It is actually focused on the documenting, classifying, summarizing, analyzing and interpretation of the transactions.

Accounting stands out as the recording of financial transactions either in a single journal or in several subsidiary books, classifying the transactions into suitable heads of ledger, summarizing the data in the profit or loss account and balance sheet, and the analysis and interpretation of the fiscal reports for the purpose of illustrating summary in regards to the financial situation of the business.

It is in some cases stated that, “Accounting happens where book-keeping ends”.

Definition

According to American institute of Certified Public Accountants, “Accounting is 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 a financial character and interpreting the result thereof”.

According to American Accounting Association, “Accounting is the process of identifying, measuring and communicating economic information to permit informed in a judgements andd decisions by users of the information.”

Concept & Definition of Accounting ?
Characteristics of Accounting ?
Key Differences Between Accounting & Finance ?
basis of accounting: Cash Basis & Accrual Basis ?

Fundamental Financial Accounting Assumptions, Principles & Conventions

Core Steps in Accounting Cycle | During & End of Accounting Period

4 Financial Statements | Balance Sheet | Retained Earnings | Cash Flows

The Balanced Scorecard | Comprehensive Knowledge | Measures | Perspectives

Capital Budgeting | Definitions | Features | Process | FIVE Stages

Capital Budgeting Decisions | Criteria | Substitute Directions | Implications

Liquidity Ratios | Current Ratio | Working Capital Ratio | Quick Ratio

Asset Turnover Ratios | Receivables Turnover | Inventory Turnover | Total Asset Turnover | Fixed Asset Turnover

Financial Leverage Ratios | Debt | Total Assets | Equity | Times Interest Earned

Profitability Ratios | Gross Profit Margin | Return On Assets | Return On Equity

Dividend Policy Ratios | Dividend Yield | Payout Ratio | Key Procedural Aspects