Definition of accounting

Accounting is the process of identifying, measuring, recording, and communicating financial information of an organization. It involves systematically classifying and summarizing financial transactions to provide useful information for decision-making, planning, and controlling activities. Accounting helps in determining the financial position, performance, and profitability of a business. It includes various principles, concepts, and methods to ensure accurate and reliable financial reporting. Overall, accounting serves as a vital tool for businesses and individuals to track their financial activities, comply with legal requirements, and make informed economic decisions.

This mind map was published on 22 August 2023 and has been viewed 65 times.