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Accounting or accountancy is the measurement, processing, and communication of financial information about economic entities like businesses and corporations. Accounting, that has been referred to as the "language of business", measures the results of organization’s economic activities and conveys this information to a variety of users, including investors, creditors, management, and regulators. Practitioners of accounting are known as accountants. The terms "accounting" and "financial reporting" are often used as synonyms.

Accounting can be divided into many fields including financial accounting, management accounting, external auditing, tax accounting and cost accounting. Accounting information systems are designed to support accounting functions and connected activities.

Accounting is a process that allows recording, processing, interpreting, summarizing, verifying and presenting of the financial transactions.

What is Accounting Study Material?

As per, the American Institute of Certified Public Accountants

"The art of commemorating, sorting out and summing up in a noteworthy manner and in terms of money dealings and events which are, in part at any rate, of a financial disposition and that goes well with understanding the results there from."

Attributes of Accounting

The described definition discloses the following as Properties of Accounting

Events and proceedings of a Financial Nature are commemorated while the consequences of a non-financial nature are not entered.

Not only this, the record should reproduce the significance of Transactions so registered both independently and cooperatively, which lets in stigmatization, in that way making it adaptable to investigate.

It can also be seen that the exploiters of the financial statements should be accomplished enough to get hold of the Message comprehended in such financial statements, and it is the comprehension of accountancy which alters the user to appreciate the substances of the financial statements.

Accounting is best acknowledged as the Language of business and passes on the business results. As the consented lingual Franca in addition to being the intermediate of communication, it also lives up to the role of accepting the subsisting as well as impending additions to the presented literature. To exchange a few words the needed, imperative and applicable information, the essentials of the prospective users are acknowledged and a methodical process stood by to resulting in the formation of the "Financial Statements".

Area of Accountancy

Accounting Basics: This will bring in you to the basics of accounting including everything from accounting equation to its components, financial statements to Income statements and the Cash flow.

Accounting Information System: Accounting Information System is considered as a collection of data and processing procedures that helps in creating the requisite information for certain users.

Auditing: It is a very vital part of accounting. Formerly, audits were utilized only for benefiting information about financial systems and the financial records of a company or a business. On the other hand, in recent times auditing also lets in non-financial subjects like a sanctuary, safety, information systems presentation, and environmental concerns.

Balance Sheet Demystified: In financial accounting, a balance sheet is a summing up of financial balances in which assets liabilities and possession equity are listed with a detailed date. Get into the elaborated analysis of a balance sheet in this section.

Bookkeeping: Bookkeeping is to put into practice of entering the transaction and accounts of a business. Bookkeeping is conceived as the least part of accounting. It necessitates putting down each and every transaction that took place in a day, which is sooner or later corresponded at the end of the day and month.

Cost Accounting: Cost accounting provides information about costs, which the management accountant makes use of to map, control and construct decisions.

Decision Making: In accounting, decision-making can be specified as picking out one course of action from a number of alternatives. If there are no options present, then no conclusion is called for. The best decision is stated to be the one that necessitates the most revenue or the smallest amount of cost is involved.

FIFO Accounting: First in First out method is an asset management and estimation method in which assets acquired or manufactured first are sold or disposed of first. FIFO accounting method is used by all entities that are maintaining stock.

Financial Accounting: Financial accounting has to do with recording, classifying, summarizing and analyzing financial transactions and preparing financial statements linked up to the business.

Time Value of Money: In the current situation, the value of money is worth more than the same assessment at a future date owing to the budding earning capacity of money, which is named as the time value of money.

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