Question

Explain what is accounting is. Also, Identify the users and the uses of accounting.

Explain what is accounting is. Also, Identify the users and the uses of accounting.

Homework Answers

Answer #1

Accounting is the process of recording, summarizing, classifying transaction or event in chronological manner.

User of Accounting -

1. Government

2. Investor

3. Vendors/Creditor

4. Stackeholder

5. Public at large

Uses of accounting -

1. Recording of transaction - It is useful in recording day to day transaction.

2. Classification - A transaction can be easily classified into a particular group.

3. It is used in preparation of budget, financial projection etc.

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