DREAMS

Definition of Accounting April 4, 2010

A. Understanding and Definitions of Accounting

Accounting is the process of recording, classifying, summarizing, processing and presenting data, transaction and events relating to finance which can be used by people who use it easily understandable for decision-making and other purpose.

B. Functions of Accounting

The primary function of accounting is an organization’s financial information. From the accounting statements we could see the pile of the organization and its financial position changes that occur in it. Accounting made qualitatively with the unit of measure of money. information on financing is needed especially by the manager/management to help make decisions of an organization.

C. Basic Reports of Accounting

Basically, the accounting process will make the output of the income statement, statement of changes in capital and balance sheet reports in a company or other organization. On an accounting report must include company name, report name, and date of preparation or the report period to facilitate other people understand it. Reports can be both periodic and there is also the character of a particular time.