What is accounting?

Introduction

Accounting has been around since the very first fiscal system emerged. As
agricultural trade grew in importance, it was not long before early
businesspeople began to develop and use the calculative system of accounting.
The modern-day practice of accounting is certainly far more sophisticated than
its ancient ancestor, but its foundation and motives have remained the same.
The sole purpose of accounting is to accurately calculate and keep records of
monetary exchanges.

Accounting

Accounting is the systematic recording, reporting,

and analysis of financial transactions of a business. 

Accountant

The person in charge of accounting is known as an accountant, and this

individual is typically required to follow a set of rules and regulations, such as
the Generally Accepted Accounting Principles. 

Accounting allows a company to analyze the financial performance of the

business, and look at statistics such as net profit.

Generally Accepted Accounting Principles. GAAP

All accounting or book keeping has a standard set of accounting principles. It

stands for every type of business. In this way there is unity in all business
accounting procedures to ensure that there is unity and a clear understanding
no matter what business is being monitored.

This system is called GAAP or Generally Accepted Accounting Principles and

are general rules that all businesses follow when recording their financial
information.