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Accounting or accountancy is that the measurement, processing, and communication of monetary and non-financial information about economic entities like businesses and corporations. Accounting, which has been called the “language of business” measures the results of an organization’s economic activities and conveys this information to a spread of users, including investors, creditors, management, and regulators. Practitioners of accounting are referred to as accountants. The terms “accounting” and “financial reporting” are often used as synonyms.
Accounting can be divided into several fields, including financial accounting, management accounting, external auditing, tax accounting, and cost accounting. Accounting information systems are designed to support accounting functions and related activities. Financial accounting focuses on the reporting of an organization’s financial information, including the preparation of financial statements, to the external users of the information, such as investors, regulators, and suppliers; and management accounting focuses on the measurement, analysis, and reporting of information for internal use by management. The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping. Double-entry bookkeeping is the most common system.
Even though accounting has existed in various forms and levels of sophistication throughout many human societies, the double-entry accounting system in use today was developed in medieval Europe, particularly in Venice, and is usually attributed to the Italian mathematician and Franciscan friar Luca Pacioli.
Today, accounting is facilitated by accounting organizations such as standard-setters, accounting firms, and professional bodies. Financial statements are usually audited by accounting firms and are prepared by generally accepted accounting principles (GAAP). GAAP is set by various standard-setting organizations such as the Financial Accounting Standards Board (FASB) in the United States and the Financial Reporting Council in the United Kingdom. As of 2012, “all major economies” have plans to converge towards or adopt the International Financial Reporting Standards (IFRS). you have reached the No 1 website. If you don’t have time to prepare for your exams, No worries! we are here for you! You will get a high Scores because you have reached the No 1 website. we also take registered IT documents, database IT certificates, registered IT certificates, proactive IT documents, database IT documents, quality IT documents, buy IT certificate, and more., Take my accounting Test, Who Take my accounting Test
