Accounting Is The Language Of Business

Accounting is called the language of business. In order to analyze whether accounting is a business language or not, we first need to know what a language is. According to the definition of grammar, the word or words that a person utters to convey feelings and moods is called language.

With the definition of language, we can ask a question...

What are people focusing on with the word or words they say?

The answer is probably "it counts feelings and moods". right?

From the above discussion, we can ask “what is the focus of accounting in business?

To get the answer, we need to focus on accounting work . The answer to this question could be something like...

• 1. Why did the deal happen?
• 2. What happens?
• 3. What impact will this transaction have on the organization?
• 4. Prepare the final account of what you can find out.
• 5. Analyzing the balance, the businessman can clarify the real state of his business.

Accounting is the language of business.

Accounting prepares the balance sheet at the end of the accounting period using ledger accounts. Before balancing, arrange all accounting entries in a trial balance so that mathematical purity can be accounted for.

However, from the balance we can know that .....

first	The size of the company's liabilities and assets.
In second place	Business risk measurement.
Third	Ability to pay liabilities from assets.
Four	Guarantee benefits for all parties.
Fifth	Measurement of retained earnings.

From the above discussion, it is clear that a businessman can know the actual status of his business through accounting. The shareholders of the company and other related people can get the real scenario of the company. That is why accounting is called the language of business.