How Accounting is Both an Art and Science

Accounting is both art and science, it follows scientific path to find, present financial findings in structured way, its art for giving creative judgment.

Functions of Accounting

Functions of Accounting are related to those statements which provide information of economic entity mainly measurable regarding money that will be used in deciding for the future plan of action from various alternatives. Functions of Accounting are; Control of financial policy and formation of planning, Preparation of budget, Cost control, Evaluation of employees’ performance, Prevention of errors and frauds.

Worksheet: Definition, Types, Preparation Process (Explained)

Worksheet is a multiple column form that is used in preparing and adjusting financial statement. There are 3 types of the worksheet; (1) General worksheet, (2) Detailed worksheet, (3) Audit worksheet. For preparing accounting worksheet you must follow 8 Simple Steps to verify accounting information accuracy before preparation of financial statements. Prepare financial statements from a worksheet is relatively easy because all necessary accounting information is properly presented and structured in the worksheet.

GAAP for Accounting Rules, Principles, Assumptions

GAAP are rules of action which are derived from experience and practice and they prove useful and become Generally Accepted Accounting Principles.

Scope of Accounting in Business and Personal Life

Scope of Accounting is wide and extend in business, Government, Financial institutions, organizations, non-profits, personal life and every other arena.

4 Steps of Developing Accounting System for Businesses

There are 4 steps of developing accounting system for collecting and processes financial information of any business in an efficient way.

Users of Accounting Information (Internal and External Users Explained)

External users of accounting information creditors, investors, government, trading partners, regulatory agencies, international standardization agencies, journalists. Internal users of accounting information are owner, directors, managers, employees of the company.

What is the Modern Definition of Accounting

Accounting is a process of identifying and measuring quantitative financial activities and communicates these financial reports to the decision makers.