Definitions of Accounting

Definitions of Accounting

Accounting

Accounting is the only art of analyzing, summarizing, reporting and analyzing a business's financial transaction. The person taking charge of accounting is known as an accountant and the accountant's role is similar to that of a record-keeper. However, accounting is now considered to be a tool of management that provides important information about the future of the organization.

Definitions of Accounting

1. In 1941, the American Institute of Certified Public Accountants (briefly AICPA) defined accounting as follows.

Accounting is practically the art of presenting accounting, writing, classification and abbreviations in important ways and in terms of money, transactions and incidents that are at least part of the interpretation of any financial nature and related results.

2. In 1966, the American Accounting Association (abbreviated AAA) defined accounting as follows

The process of identifying, evaluating and communicating financial information is to allow accounting information to allow users to make decisions and inform decisions.