Define Accounting . What do you understand by the phrases 'In terms of money' and ' of financial character' often used in definition of Accounting ?
Hey akash,
Accounting is the process of analysing,summarising and recording,reporting the data or financial transactions concerning to a certain Organisation.It can be as small as of a family or as big as a Company. Anything that has value and can be used as a means of financial exchange is called Money.
Accounting is used as a legal tender for repayment of debt, retain our purchase power. It is also taken as accounting measure.
Financial character is the feature of a financial transaction.It mainly involves flow of cash and is measured in the terms of money. You cannot record every transaction in the accounting. For example, only those transactions which involve money and cash flow are recorded. Now this is a financial character.
Hope it helps.
Good luck.
