Accounting Is The Language of Business Why?
Well Said "Accounting Is The Language Of Business" (Warren Buffet) Because, Accounting is the way through which the useful information of a business is communicated to concerned parties, e.g., owners, directors, managers, employers, employees, government, customers, creditors, investors, etc. This information may be related to financial, cost, managerial, etc. For example financial information is useful for Users of Financial Information / Statements , cost information is useful for producers, managerial information is useful for management of the business. Without accounting, we are unable to collect financial, cost and managerial information. Accounting has Generally Accepted Accounting Principles (GAAP) which are universally applicable and acceptable in every country of the world. These standards describe the basis for measuring, recognition, recordings, etc., of different kinds of accounts in the Books of Accounts . It maintains proper records of books of accoun...