ACCOUNTING

Accounting is the process of recording, summarizing, analyzing, and reporting financial

transactions pertaining to a business or an organization. Accounting helps to track
income and expenditures, ensure statutory compliance, and provide quantitative
financial information for decision making.

There are different types of accounting, such as financial accounting, managerial

accounting, cost accounting, tax accounting, auditing, and forensic accounting. Each
type of accounting has a specific purpose and scope, and requires specialized skills and
knowledge. Some of the common accounting terms are assets, liabilities, equity,
revenue, expenses, income, balance sheet, income statement, cash flow statement,
journal, ledger, trial balance, and financial ratios.

Accounting is an important function of strategic planning, external compliance,

fundraising, and operations management. Accounting is also known as accountancy,
and the professionals who practice accounting are called accountants. Accountants may
have different qualifications and certifications, such as Certified Public Accountant (CPA),
Chartered Accountant (CA), Certified Management Accountant (CMA), and Certified
Internal Auditor (CIA).