Meaning of Accounting: Accounting is the process of identifying, measuring, recording and communicating thereof to the interested users of the information.
Accounting as a sources of information: Every steps in the process of accounting generates information. The role of accountant in generating accounting information is identify events, measurements, recording, and communicating to the users.
Users of accounting information: The business transactions are identified, measure and recorded in order to supplies appropriates information to different interested groups such owners, creditors, employees, tax authorities, and government.
Qualitative Characteristics of accounting:
The accounting information should posses the character of
- under stability
The primary objectives of accounting are
- Maintenance of Records by business transactions
- Calculations of Profit or loss
- Depiction of financial position
- Providing accounting information to its users
It plays a role of a
- Information system
- Historical record
- Provide service to user