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Accounting

Accounting (Definition)​

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions. It involves the systematic recording, reporting, and analysis of financial transactions of a business.

Key aspects of accounting include:

  1. Recording financial transactions
  2. Classifying and summarizing financial data
  3. Preparing financial statements
  4. Analyzing and interpreting financial information 5. Reporting financial results to stakeholders
  5. Ensuring compliance with legal and regulatory requirements Accounting is essential for businesses to track their financial health, make informed decisions, and communicate their financial position to stakeholders such as investors, creditors, and regulatory bodies.