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Meaning of accounting

 Meaning of accounting :  Accounting is  the process of keeping track of an organization's financial transactions and records, and summarizing and communicating this information to relevant parties, such as investors ,creditors, and managers. It helps organizations to manage their finances effectively and make informed decisions about their business activities.







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Scope of Financial Accounting

 Financial accounting is a branch of accounting that deals with the recording, summarizing, and reporting of financial transactions of an organization. Its scope includes: 1. Reporting performance and position: Reporting the performance of an organization  as well as the state of the organization are the primary purposes. This can be seen through alternate names for the incomes statement and balance that were mooted for them namely the statement of financial performance and the statement of financial position. 2. Reporting to shareholders: Public traded companies accounts are relied on by more than direct shareholders. As a result of being publicly sold the scope of financial accounting information provided by these companies must also include the needs of potential investors to enable them to determine if they desire to invest in these companies. his he why publicly traded companies are required to publish their financial statement and make them the publicly available. 3. Rep...
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