Question

What is Accounting

Answer 1

Accounting is a system of recording and summarising various financial transactions and keeping them as a record for a longer period of time so that they can be used for further references.

Accounting is starting from recording of various financial statements through journal, and posting those financial statements into the relevant accounts in ledger and then transferring those amount from ledger to the trial balances and to the balance sheet which are to be used as the public document.

So, Accounting is a whole system combining journal, ledger and trial balance and presenting it into the form of financial statements.