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2. What Is Accounting ?
Accounting is the process of recording, summarizing and
presenting the financial data of the company to the
concerned groups.
It records all the cash inflow and outflow that happens
during the year and also records the reason for the monetary
movement.
3. Is that all?
No, accounting even records other important data as well.
Such as: the depreciation of assets, the value of the
shareholder’s share, stock in balance and a lot more.
In accounting, you can find information for every monetary
movement that happens during a financial year.
4. Who manages the
accounts?
Accounts are managed by
accountants. They are personnels
who are trained and know which
account is involved in which
transaction. They learn and
graduate with accounts as their
major subject. This helps them keep
tabs on all the accounts a company
may have.
5. How many accounts does a company have?
A company may have a few accounts or many accounts. This all depends on
the size of the company. Some startups just have accounts for: owner, salary,
bank, cash and other minor expenses.
Some bigger companies have many accounts which are for: shareholders,
debentures, office expense, factory expense, salary, wages, cash, bank are a
few of many more accounts that they can have.
6. Are there more accounts than
that?
Yes, there are government
departments and non-profit
organizations. They too have
accounts, and their accounts
are a little different from the
other companies. Since, their
work is different, they have
different accounts. Their
accountants are specially
trained for to manage such
accounts.
7. Is it easy to study?
No, it is not. There is a lot you need to understand and
learn. Since there are many accounts, there are many
subjects as well. To decrease the amount of subjects,
accounts have been clubbed together with other ones
that have the same use. But there still are many
subjects. And there are assignments as well. These
assignments add to the final grade.
8. Will I get a job?
Yes, every company needs accountants to manage
their accounts. Because at the end of every year, the
company has to show its accounts to the government
and pay taxes. If the government finds any
discrepancy in the accounts, the government would
fine the company. This makes the job of an
accountant important. So, there are a lot of jobs.
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