Accounting is a business language which makes clear the various kinds of transactions during the given period of time. Accounting is defined as either recording or recounting the information of the business enterprise, transpired during the specific period in the summarized form.

Accounting is broadly classified into three different functions, they are:
1. Recording
2. Classifying and
3. Summarizing

According to American Institute of Certified Public Accountants Association defines the term accounting as follows "Accounting is the process of recording, classifying, summarizing in a significant manner of transactions which are in financial character and finally results are interpreted."

Classifications of Accounting

i. Financial Accounting
ii. Cost Accounting
iii. Management Accounting


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