What is an Accounting? Objectives of Accounting?

WHAT IS ACCOUNTING?

Accounting is a science and is often called as the language of business, where, business is a continuous human economic activity aiming at making a profit by producing or buying and selling goods or providing services for a price.
                                   Accounting is considered as a system which collects and processes the financial information of a business. This information is reported to the users to enable them to make appropriate decisions.

AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTS (AICPA) Has defined the accounting as "the art of recording, classifying and summarizing in a significant manner, in terms of money transactions and events which in part, at least of a financial character and interpreting the results thereof".

AMERICAN ACCOUNTING ASSOCIATION (AAA) defines accounting as "the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information ".

Objectives of Accounting:
1. To maintain accounting records.
2. To find out the result of operations.
3. To ascertain the financial position.
4. To communicate the information to users.