Accounting Definition

 Definition

Accounting is the systematic recording, classifying, summarizing and interpreting business or economic transactions of a business that take place within a specific period.

Where does Accounting apply

Accounting applies in all businesses of whatever nature, be it merchandizing, manufacturing, service provision, government utility service provision, NGOs etc. As long as an entity is carrying out business transactions.

Why is Accounting necessary?

Accounting is necessary for the purposes of accountability and transparency of business deals

Who uses Accounting?

Accounting is used by all stakeholders with vested interest in an entity. Such as owners of the business, government, investors, creditors, and accounting academicians and professionals

How does Accounting work?

Accounting involves step by step recording of accounting information as guided by the Accounting cycle