3. Definition of Accounting
•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.
4. Nature of Accounting
•Accounting is a systematic recording
of financial transactions and the
presentation of the related information
to appropriate persons.
5. Nature of Accounting
Accounting is a service
activity.
•Accounting provides assistance to
decision makers by providing them
financial reports that will guide them in
coming up with sound decisions
6. Nature of Accounting
Accounting is a process.
Accounting provides assistance to
decision makers by providing them
financial reports that will guide them
in coming up with sound decisions.
7. Nature of Accounting
Accounting is a process.
•it follows some definite steps like
the collection, recording,
classification, summarization,
finalization, and reporting of
financial data.
8. Nature of Accounting
Accounting is both an art and a
discipline.
•The word „art‟ refers to the way
something is performed. It is behavioral
knowledge involving a certain creativity
and skill to help us attain some specific
objectives.
9. Nature of Accounting
Accounting deals with financial
information and transactions
•Accounting records financial transactions
and data, classify these and finalize their
results given for a specified period of time,
as needed by their users.
10. Nature of Accounting
Accounting is an information
system.
•Accounting is recognized and characterized as a
storehouse of information. As a service function,
it collects processes and communicates financial
information of any entity.
