Accounting - Finance - Accounting

Accountancy is the process of communicate financial in order about a commerce body to user such as share holders and manager The communication is normally in the form of financial statement that show in money terms the financial resources under the manage of management; the art falsehood in selecting the information that is pertinent to the user and is reliable. Accountancy is a branch of numerical science that is useful in discovers the causes of success and failure in business. The principles of accountancy are practical to business entities in three division of practical art, named accounting, secretarial, and auditingAccountancy is distinct by the Oxford English Dictionary (OED) as "the profession or duties of an accountant".Accounting is defined by the American Institute of Certified Public Accountants (AICPA) as "the art of video recording, classify, and abbreviation in a significant manner and in terms of money, dealings and events which are, in fraction at least, o f financial character, and interpret the results thereof.Accounting is thousands of years old; the earliest secretarial records, which date back more than 7,000 years, were found in Mesopotamia (Assyrians). The citizens of that time relied on primitive accounting methods to record the growth of crops and herds. Accounting evolved, improving over the years and advancing as business advanced. Early accounts served chiefly to assist the memory of the businessperson and the addressees for the account was the proprietor or record keeper alone. Cruder forms of accounting were inadequate for the problems created by a business entity involving manifold investor, so double-entry accounting first emerged in northern Italy in the 14th century, where trading ventures began to require more capital than a single individual was able to invest. The development of joint stock companies created wider audiences for accounts, as investors without immediate knowledge of their operations relied o n accounts to provide the necessary information. This expansion resulted in a split of accounting systems for internal (i.e. administration accounting) and exterior (i.e. financial accounting) purposes, and then also in secretarial and disclosure regulations and a growing need for independent attestation of external accounts by auditors.Today, accounting is called "the language of business" because it is the vehicle for reporting monetary information about a business entity to many different groups of people. Accounting that concentrates on coverage to people inside the business entity is called management accounting and is used to provide information to employees, managers, owner-managers and auditors. Management accounting is concerned primarily with as long as a basis for making management or operating decisions. Accounting that provides information to people outside the business entity is called financial accounting and provides information to there and potential shareho lders, creditors such as banks or vendors, monetary analyst, economists, and government agency. Because these users have different needs, the presentation of financial accounts is very controlled and subject to many more rules than management accounting. The body of rules that governs monetary secretarial in the United States is called Generally Accepted Accounting Principles, or GAAP

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