Accounting involves identifying, classifying, recording, summarizing, and interpreting financial business transactions in order to maintain proper records, calculate profit and loss, depict the financial position, provide effective control over the business, and make information available to various groups. It replaces memory, assesses business performance and financial status, provides documentary evidence, prevents and detects frauds, and is helpful to management.

2. Accounting is an art of
 Identifying
 Classifying
 Recording
 Summarising &
 Interpreting
 Business transactions of financial nature

3.  Maintaining proper record of business
 Calculation of profit or loss
 Depiction of financial position
 Providing effective control over the business
 Making information available to various groups

4.  Replacing Memory
 Assessing the performance of the business
 Assessing the financial status of the business
 Documentry evidence
 Preventing and detecting frauds
 Helpful to management