Question

what is accounting

Answer 1

Accounting is an art of recording , Summarising , Analysing of economic data . It's summaries all the transaction at a place which have been occurred during the year.

It's start from Journal entry and ends with preparation and finalization of financial statements i.e. Income summary and balance sheet.

In other words , Accounting kept the record of financial transactions of an entity. Due to proper Accounting of financial transactions we can get current value of entity Assets and liability and true picture of business's profit or loss.