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By: Ikedi Ani-okoye.

What is accounting?

Accounting is The systematic recording, reporting, and analysis of financial transactions of a business.

Accounting is about providing relevant information to others. Accounting information can also be called economic information - it relates to the financial or economic activities of the business or organisation.

Once Accounting information is gathered it needs to be identified and measured. This is done by a standard tway of a "set of accounts", this is based on a system of accounting known as double-entry bookkeeping. This accounting system will then identify and record "accounting transactions".

The gathering of accounting information is not as straight-forward process, as it may seem. it involves lots of judgements about certain assets and their value owned by a business or what the liabilities are that are owed by a business. it is also about accurately finding out how much profits have been made or loss has been made by a business in a set period of time. As we will see, the measurement of accounting information often requires the business management to come to a decision.

Accounting has a need for accounting information to be noted. The way that it is usually noted may vary. There are a number of accounting communication (e.g. annual report and accounts, management accounting reports) they all have there different purposes. The communication need is about understanding who needs the accounting information, and what they need to know.

Accounting information is noted by taking financial statements there are two main reasons for accounting financial statements.

1- The are used to report financial position of the entity being accounted for (e.g. a business, an organisation);

2- To show the performance of the entity (financially) over a particularly period of time (an "accounting period").

The most noted factor in accounting is profit, not surprisingly a business always wants to know if they are growing successfully and profits willl usually measure that.

CONCLUSION

If you are interested in a career in accounting the use of numbers is an important part of the job, so you will have to be good at maths. If you are just look for somebody who you want to do the accounting for you, there are alot of accountants on the internet. They can be found very easy and are usually ready to answer your accounting questions.