{"id":8941,"date":"2013-04-13T07:22:42","date_gmt":"2013-04-13T07:22:42","guid":{"rendered":"http:\/\/vskills.in\/certification\/tutorial\/?p=8941"},"modified":"2024-04-12T14:14:32","modified_gmt":"2024-04-12T08:44:32","slug":"meaning-of-accounting-2","status":"publish","type":"page","link":"https:\/\/www.vskills.in\/certification\/tutorial\/meaning-of-accounting-2\/","title":{"rendered":"Business Accounting Tutorials | Meaning of Accounting"},"content":{"rendered":"\n
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\u00a0ACCOUNTING: <\/strong>MEANING AND SCOPE<\/strong><\/h3>\n

Accounting is a business language, that serves as a means of communication. This indicates that accounting acts as a means to know the financial health of the organization from the financial reports and the results thus generated.<\/p>\n

At earlier stages, the chief objective of accounting was limited to determining the profit or loss for the period and to ascertain the financial state of affairs at a particular point in time. But as the scale of operations increased, a number of questions arose:<\/p>\n

– What should be the selling price set by the company?<\/p>\n

– What should be the cost incurred for production?<\/p>\n

– Whether the cost incurred and the price charged are reasonable or not?<\/p>\n

– Can the prices be reduced?<\/p>\n

\u201cAccounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof.\u201d<\/p>\n

– By American Institute of Charted Accountants<\/p>\n

\u201cAccounting is the science of recording and classifying business transactions and events, primarily of a financial character, and the art of making significant summaries, analysis and interpretation of those transactions and events and communicating the results to persons who must make decisions or form judgment.\u201d<\/p>\n

It is defined as \u201cthe art of recording, classifying and summarizing in terms of money transactions and events of a financial character and interpreting the results thereof.<\/p>\n

In simple words we can say that-<\/strong><\/p>\n