“Accounting is know as language of business”
Accounting is very necessary and useful for the business. Business is lame without accounting. It helps to keep the financial records as-well-as to make plans for the progress of business
Today I am going to talk about accounting’ what is accounting?
Many people might think it is hard and so boring but of course that is wrong. It is art of classification, maintaining recording analyzing financial activities. It is a study of how business track their income and assets. It is the study how to reduce the cost of produced and to increase the output it is the only way to check the profit and loss of a business
Why do we need accounting?
We live in the world here people need things from the day they born to the day they die some of these are physical needs (need for a goods of varies sorts like food, clothing, shelter and so on) some of these are emotional needs like (need for education, entertainment, or recreation) in satisfying such needs businessman perform useful services to their fellow humans. In return these expect reasonable reward for there effect in the form of profit “cut your coat according to your cloths” even a king became a pauper if he faces to exercise economy in his expenditure. In other words every individual will have to plan his expenditure according to his income the proper planning of expenditure helps us to insure proper use of our income. Of course that is true that the quality of goods can be increase by making a proper planning Accounting is very much connected with our person life as-well-as our business we generate ideas in a way when we ‘plan what we will do with our money’ how must money we will spend, whilst how must of it will be kept back. Therefore accounting is very necessary for our business to provide the information which is useful door sound economic decision making
A person who practices and study accounting is known as accountant. He reviews format and process a companies or a person account. Along the way he has learned the theory of accounting
Accounting is divided into three branches
- Financial Accounting
- Cost Accounting
- Managerial Accounting
Financial accounting provides information to decision maker who are not involved in day to day operation of organization, decision maker may include creditor investor and other