What is Accounting- Definition & Meaning

The meaning of the word "accounting" is accurate and reliable information on this issue, and "science" is special knowledge. For this purpose, the word "accounting" means the science of financial information. Thus, we can say that accounting is an information system.

Accounting is a systematic and comprehensive method of identifying, recording, summarizing and finally creating financial statements and presenting them to users.

Following regulatory rules and strategies, an individual or organization performs the following activities such as identifying financial events, entering them into accounting records, dividing them and, in accordance with the financial year, preparing accounting records such as income statements, balance sheet. sheets, etc. Providing this information to users can be defined as accounting.

American Institute of Certified Public Accountants - Accounting as...

“Accounting is the art of recording, classifying and summing up money, transactions, and at least events of a monetary nature, and interpreting their results.”

Accounting Features

1. Identifies financial facts or information.
2. He records this information in the financial books.
3. Aggregates financial information by transferring information from one ledger to another.
4. Creates a trial balance before completing the income statement and balance sheet.
5. Creates an income statement that reflects income and expense statements.
6. Provides a balance sheet showing assets and liabilities after the reporting period.

In conclusion, accounting can be called any study that helps in identifying and recording financial information for business and non-commercial matters, or in determining and displaying the financial condition of small and large companies .