Fundamental Accounting Concepts and Core Principles
Classified in Economy
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Chapter 1: Introduction to Accounting
Meaning of Accounting
Accounting is considered the art of identifying, measuring, recording, and communicating the required information relating to an organization's economic events to interested users of such information.
Definition of Accounting
According to the American Institute of Certified Public Accountants (AICPA) in 1941, "Accounting is the art of recording, classifying, and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least of financial character, and interpreting the results thereof."
Functions of Accounting
- Identification: This is the first step in accounting, where it is decided what to record, i.e., to identify the financial events to be