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Accounting is the recording, classifying and summarizing of business transactions in terms of money, the preparation of financial reports, the analysis and interpretation of these reports for the information and guidance of management. The main purpose of accounts is to ascertain the profit or loss during a specified period to show financial position of the business on a particular date and to have control over the firms property. Accounts are required to be maintained to measure the income of the business and communicate the information so that it may be used by managers, owners and other parties. Accounting is a discipline which records, classifies, summarizes and interprets financial information about the activities of the concern so that intelligent decision can be made about the concern.

The importance of accounts is to provide meaningful information about the business enterprise to those persons who are directly or indirectly interested in the performance and financial position of a business enterprise. Such persons may be owners, creditors, investors, employees, government, public, research scholars and the managers.

Properly maintained accounts are often treated as a good evidence in the court to settle disputes. If accounts are maintained properly it will be of great assistance to the businessman in settling income tax and sale tax liability

Accounts provide the facility of comparative study of various aspects of the business such as profits, sales, expenses etc with that of the previous year and helps the businessman to locate significant factors leading to change if any.

 

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Accounts Homework help, Assignment Help. Online Tutoring Help, Test Preparation Help. Case Study Help