What is business?

-Business refers to regular conduct of legal activities primarily

intended to accumulate profit
-Profit,the generation of profit is considered as the primary motive of a
business entity
-A business is also formed to promote the welfare of its members.The
different individuals comprising the businesses have common
objectives
aspirations,accountabilities,and responsibilities
-The secondary obligation of a business towards society is called as
social responsibility like promoting the welfare of their employees.

-What is accounting?
Accounting is the systematic or step by step process of measuring and
reporting relevant financial information about the activities of and
economic organization or unit
-What are the nature of accounting?
1.Accounting is a systematic process
-Process is a series of actions that produce something that lead to a
particular result.
2.Accounting is an ART
Art-acquired by experience,study or observation.As an occupation
requiring knowledge or skills.
3.Accounting is a sevice activity
Service-is the occupation or function of serving activity something that
is done as work or for a particular purpose.
-What are the basic phases of accounting?
1.Recording
-Otherwise known as bookeeping/journalizing
-Business transactions are recorded daily
-Journal ledger

Journal Ledger
-Book of entity -Book of entry where transactions recorded

2.Summarizing
-Accounting process which involves preparation of the financial
statement.
Financial statement
-Financial product of accounting
3.Classifying
-involves sorting and grouping similar items under the designated
name,category,or account.
4.Interpreting
-The interpreting phase of the accounting process in concerned with
analyzing financial data,and is a critical tool for a decision making