College Books - Chapter 1 - Introduction - Principles of Accounting
Accounting Accounting is the language of business. Because accounting is the tool through which we get information about the financial performance and financial position of the business. For a businessman, Partnership or an organization, accounting helps in managing our expenses to generate revenues. Without, proper books of accounts no businesses can succeed. Definition of Accounting “Accounting is concerned with recording, classifying, summarizing of the information and interpretation of the results of all the financial statements prepared by the business”. From the definition of Accounting, following four terms can be taken into account: ü Recording ü Classifying ü Summarizing ü Interpretation v Recording Recording phase is done through Book-Keeping. Recording means recording of transactions in the Journal Chronological (Date-wise) after verifying the transaction through an invoice. ...