Introduction to Accounting
Basic Terms in Accounting
Entity Entity refers to a reality that has a distinct individual existence that can be identified. A business entity is a distinct and easily distinguishable commercial firm such as Super Bazaar, Hire Jewellers, ITC Limited, and so on. An accounting ...
Role of Accounting
Accounting's function has evolved throughout the ages in response to changes in economic growth and social needs. It measures, classifies, and summarizes a large amount of data from an organisation, and then reduces that data into reports and ...
Objectives of Accounting
Accounting's primary goal as an information system is to deliver valuable data to a diverse set of users, both external and internal. Financial statements, such as a profit and loss account and a balance sheet, offer essential information, especially ...
Meaning of Accounting
"Proper accounting is like engineering. You need a margin of safety. Thank God we don't design bridges and airplanes the way we do accounting." Accounting was defined by the American Institute of Certified Public Accountants (AICPA) in 1941 as ‘the ...