Purpose of Accounting

The purpose of accounting is to provide the information that is needed for sound economic decision making.

Main Purpose of Financial Accounting

The main purpose of financial accounting is to prepare financial reports that provide information about a firm’s performance to external parties such as investors, creditors, and tax authorities.

Definition of Accountancy

Accountancy or accounting is the art of communicating financial information about a business entity to users such as shareholders and managers.

Nature of Communication

The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management.

Process of Accountancy

Accountancy is the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated.

Book Content

The book discusses the basic concepts and techniques of financial accounting in a student-friendly manner.