Meaning Of Accounting

Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the results thereof. -AICPA

Basic Framework Concepts Standards Postulates Principless .

Types Of Accounting Accounting Government Accounting Enterprise Accounting Social Accounting Financial Accounting Management Accounting Cost Accounting .

Accounting Principles Accounting Principles are rules of action or the methods and procedure of accounting commonly adopted while recording business transactions. .

Functions Of Financial Accounting Recording Of Transactions Making Information more Reliable Classification Of Data Functions Of Financial Accounting Communication of Results Summarising Interpretation .

Classification of Accounting Principles Business Entity Concept Going Concern Concept Cost Concept Dual aspect Concept Accounting Concepts Money Measurement Concept Accounting Period Concept Realisation Concept Convention of Conservatism Matching Concept Convention of Materiality Accounting Principles Accounting Conventions Convention of Disclosure Convention of Consistency .

Limitations of Financial Accounting Historical Nature Non-Presence of Uniform Methods Not Helpful Cost Control Not Helpful in Price Determination Limitations of Financial Accounting Quantitative Information Not Helpful in Strategic Decisions Possibility of Manipulation .