Accounting is the analysis and interpretation of book-keeping records. It includes not only the maintenance of accounting records but also the preparation of financial and economic information which involve the measurement of transactions and other events relating to the entity.
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Accounting is defined as “the art of recording, classifying and summarizing in terms of money transactions and events of financial character and interpreting the results thereof.”
According to Smith and Ashburne: “Accounting is the science of recording and classifying business transaction and events, primarily of financial character, and the art of making significant summaries, analysis and interpretation of those transactions and events, and communicating the results to persons who must make decisions or form judgment.”