What is accounting?

What is accounting?

Definition: It is a systematic process of indentify, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information is called accounting.

Explanation: Financial accounting is

a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement, balance sheet, cash inflow and cash outflow, profit and loss account, bank reconciliation report and depreciation expenses. Accounting also provides information how many resources available to a firm or organization, the means employed to finance those resources, and the result achieved through their use.