Accounting!

1- Accounting is a systematic and complete record of financial transactions related to the company, included the synthesis of these transactions to the regulatory bodies and the actual tax collection, referring to the analysis and reporting.

2-Accounting is a systematic investigation, reporting and analysis of corporate financial transactions 

Accounting can be described as a means of communicating the financial soundness of a company or organization to stakeholder. This is way to assess the assets, liabilities and cash flows of all currents and future investor, or the future prospectus of the business. The Accounting department is responsible for recording and reporting the cash flows transactions of a company. This department has some key rules and responsibilities. including accounts receivable, accounts payable, payrolls, financial reporting, and maintaining financial control.

Function of Accounting:

Accounting includes business transactions, financial flows, the process of creating assets within the organizations, and preparation of financial record of the business financial situation at any point in time.

Accounting data:

Accounting data is information and data obtained from journals, accounting record and other departments supporting financial statement. e.g spreadsheet.These can be computer readable or paper readable.

Purpose of Accounting:

The purpose of accounting is to summarize and reporting financial information on performance, financial conditions, and cash flow. This information is used for money management, investment and borrowing decision.

Systems of Accounting:

(1) Cash system of accounting (2) Trade or commerce or actual system of accounting 

Cash system of accounting is an accounting method in which receipts are recorded, when they are received and expenses are recorded during the period in which it was actually paid. Cash accounting in which two types of accounting. Others are actual accounting whose revenue and expenses are recognized when they occurs. SMEs tend to use cash accounting, as it is very easy and easy. Its seems to give a clear image of how much money the company is really close. Company, however, need to comply with generally accepted accounting principle of actual accounting. Actual accounting is the basis current accounting treatment. It is also know as the trademark system of accounting. 

Branches of Accounting: 

There are three main branches in accounting which consist financial accounting, cost accounting and management accounting, accounting is based on systematic way to recorded business transactions on accounting principle. This is the original form of billing process. 

Principle of Accounting: 

Accounting principle are rules and regulated that company must obey when financial data is presented. The general scope of accounting principles is based on generally accepted accounting principles in united state of america. 

Concept of Accounting: 

Accounting policies used used to create accounts and financial statements. There are Four basic concepts in accounting. 

Accrual Concept: Revenue or expenses when received or paid in cash are not recognized when the occurs. 

Consistency Concept: The method should be used unless there is valid reason to do if a billing method is selected or not. 

Continuity Concept: Accounts are preparing business in good condition in the foreseeable future profit organizations.

Prudence Concept: This method should be used when income or profit are included in the balance sheet.