Definition of accounting
Accounting is the art of serving necessary and effective financial information of economic entities through the process of recording, summarizing, analyzing and reporting transactions to concerned parties.
It conveys the information about financial health of a business or individual. That is why accounting is well known as an information system in today’s business world.
In accounting, businesses or economic entities are treated as Artificial Individual. Being an artificial individual it communicates with other parties through accounting. Whatever we want to know about a business organization or economic entity, we find it as information provided by accounting. Considering that usability, nowadays, accounting is popularly called as the “Language of Business”.