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Friday, April 1, 2016

Define Accounting

Reviewing accounting after a long time of study as well as it is also helpful for new entrant both to the student and business person to start a business. Before starting the business an entrepreneur must know the keys of the business accounting terms and the meaning of these terms. As well as it is also helpful for the preparation of tests only for initials.

 Different authors define accounting in different ways but the core idea of all the definitions has been the same. Earlier "accounting is an art of recording, reporting & analysis of the financial transactions of the business for a certain period of time". Later it is defined as accounting and bookkeeping are two different parts, "the first part of recording and posting is considers as bookkeeping and the second part of the definition is an analysis of this record for a financial period is considered as accounting".
Accounting allows a business person or a company to analyze his/its financial position in term of profit and loss.

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