What is 'Accounting'

Accounting is the systematic and comprehensive recording of financial

transactions pertaining to a business, and it also refers to the process of
summarizing, analyzing and reporting these transactions to oversight
agencies and tax collection entities. Accounting is one of the key functions for
almost any business; it may be handled by a bookkeeper and accountant at
small firms or by sizable finance departments with dozens of employees at
large companies.

BREAKING DOWN 'Accounting'

The reports generated by various streams of accounting, such as cost

accounting and management accounting, are invaluable in helping
management make informed business decisions. While basic accounting
functions can be handled by a bookkeeper, advanced accounting is typically
handled by qualified accountants who possess designations such as Certified
Public Accountant (CPA) in the United States, or Chartered Accountant (CA),
Certified General Accountant (CGA) or Certified Management Accountant
(CMA) in Canada.

Read more: Accounting

http://www.investopedia.com/terms/a/accounting.asp#ixzz4fzl7FEmF

Follow us: Investopedia on Facebook