What Are The 3 Definitions of Accounting By Different Authors And Institutions

Accounting is a language of business as it measures financial performance and financial position and interprets the results of the business through various Financial Statements.

 

Here are the 3 Definitions of Accounting (Definitions Of Accounting By Different Scholars & Authors And Institutions)

1. According To American Institute of Certified Public Accountants Committee on Terminology (AICAT)

“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 results thereof”.

 

2. Modern Definition of Accounting

 

According to American Accounting Association (AAA)

“Accounting is the process of identifying, measuring and communicating economic information to permit informed judgements and decisions by users of information”

3. Accounting Definition By Different Authors & Scholars

According to R.N Anthony, “Nearly every business enterprise has accounting system. It is a means of collecting, summarizing, analyzing and reporting in monetary terms, information’s about business”.

According to Smith and Ashburne, “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”.