Definition of Accounting

Learn the easy definition of Accounting from this video... easy learning....

What is Accounting?

Accounting is an information system that identifies, records, and communicates the economic events of an organizations to the interested users.

Accounting is a way of recording, analyzing and summarizing transactions of an entity (business organization).

• The transactions are recorded in 'books of original entry'.
• The transactions are then analyzed and posted to the ledgers.
• Finally the transactions are summarized in the financial statements.