736287-1-3E AID: 112715 | 28/12/2019

Accounting refers to the work of recording financial transactions pertaining to business

operations for which accountants required to have knowledge of the basic fundamentals
of accounting. The accounting practice includes recording, summarizing, posting,
classification, analyzing, and reporting these transactions in the form of financial
statements. The financial statements are the summarized view of financial transactions
over an accounting period.

Accounting refers to recording and summarizing financial transactions. An accountant

requires a complete knowledge of accounting, book-keeper, accounting, auditing etc. The
accountant collects, records, organizes, and analysis financial information for
organizations. He also required preparing financial reports that provide information about
incomes, expenses, position of assets, and liabilities.

These financial reports are required for internal use by staff with in the organization as
well as to comply with the requirements of applicable laws and regulations. Therefore the
accountant requires sufficient knowledge of these relevant areas. Accountants also
conduct audits to determine if client organizations are following applicable financial
reporting framework. After conducting audit, they prepare audit report, in which he
provides his findings and suggestion. So for this, an accountant required a sufficient
knowledge of applicable accounting and auditing standards.

To conclude, accounting refers to the recording of financial transactions along with

sorting, retrieving, summarizing, and presenting the results in various reports, storing,
and analyzing.