Introduction to Accounting

Accounting involves recording, classifying, and summarizing financial transactions in an organized manner, using monetary measurements as a standard. While it includes bookkeeping, accounting is a broader concept. Only financial transactions that can be quantified in monetary terms are recorded, allowing stakeholders to understand the financial standing of an entity over a specific period. It focuses on summarizing financial data and helps management prepare various reports.

Accounting, or accountancy, encompasses the measurement, processing, and communication of both financial and non-financial information about economic entities like businesses and corporations. Often referred to as the "language of business," accounting quantifies an organization’s economic activities and conveys this information to various stakeholders, including investors, creditors, management, and regulators.