- methods for recording transactions,
- keeping financial records,
- performing internal audits,
- reporting and analyzing financial information to the management, and
- advising on taxation matters.
It is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It reveals profit or loss for a given period, and the value and nature of a firm's assets, liabilities and owners' equity.
Accounting provides information on the
- resources available to a firm,
- the means employed to finance those resources, and
- the results achieved through their use.
See also: List of Key Accounting Terms and Definitions at InvestorGuide.com.
Use accounting in a sentence