Accounting involves tracking assets, liabilities, expenses, revenue and equity through systematic recording of financial transactions. It is defined as identifying, measuring, recording and communicating financial information, and is important for preparing financial statements, determining what a business owns and owes, safeguarding interests, and meeting legal requirements. The scope of accounting includes financial accounting, cost accounting, management accounting, computerized accounting, and database management systems.

1. Accounting: Meaning,
Definition, Importance & Scope
Presented by: Surekha V S
Assistant Professor in Commerce Education
Sree Vivekananda Teacher Education Centre, Akkikkavu

2. Accounting: Meaning
❏ It is the process of tracking assets, liabilities, expenses,
revenue and equity.
❏ Accounting is the language of business
❏ It is an organized and systematic way of recording the
financial transactions made by the business organization

3. Accounting: Definition
“Accounting may be defined as identifying, measuring,
recording and communicating of financial information.”
Bierman and Drebin

4. “Accounting refers to the process of identifying, measuring
and communicating economic information to permit informed
judgements and decisions by users of information”.
AAA

5. Importance
❖ Helps to prepare
financial statements
❖ Helps to know what
the business owes and
owns
❖ Helps to safeguard the
interests of the
business and owners
❖ Meeting the legal

6. Scope of Accounting
● Financial Accounting
● Cost Accounting
● Management Accounting
● Computerised Accounting
● DBMS

7. Financial Accounting
To determine profitability and financial position of a concern for
a specific period of time.

8. Cost Accounting
Cost Accounting is the formal accounting system
setup for recording costs. It is a systematic procedure
for determining the unit cost Of output produced or
service rendered.

9. Management Accounting
Management Accounting is concerned with presentation
of accounting information to the management for effective
decision making and control.

10. Computerised Accounting
The computerised accounting system is an accounting data
system that processes the financial transactions and
transactions as per GAAP (Generally Accepted
Accounting Principles) to produce reports as per user
demands

11. DBMS
1. It is a computerized record-keeping system.
2. It is a repository or a container for collection of
computerized data files.
3. It allow the users to define, store, retrieve and update the
information contained in the database on demand.