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    Nature of Accounting - Acc140

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    Regina Nyasha Linde
    Accounting involves collecting financial information to help various users make decisions. It is considered both a service activity and a profession that requires specialized education. As a social force, accounting protects public interests by providing reliable information that benefits society. Accounting serves as a language for reporting and communicating business information through numerical and textual representations. It has principles like double-entry bookkeeping and is both a science with set rules and an art that requires skill, knowledge and experience to maintain financial records in an organized way.

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    Nature of Accounting - Acc140

    Uploaded by

    Regina Nyasha Linde
    15 views1 page
    Accounting involves collecting financial information to help various users make decisions. It is considered both a service activity and a profession that requires specialized education. As a social force, accounting protects public interests by providing reliable information that benefits society. Accounting serves as a language for reporting and communicating business information through numerical and textual representations. It has principles like double-entry bookkeeping and is both a science with set rules and an art that requires skill, knowledge and experience to maintain financial records in an organized way.

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    Nature of Accounting- Acc140

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    Accounting involves collecting financial information to help various users make decisions. It is considered both a service activity and a profession that requires specialized education. As a social force, accounting protects public interests by providing reliable information that benefits society. Accounting serves as a language for reporting and communicating business information through numerical and textual representations. It has principles like double-entry bookkeeping and is both a science with set rules and an art that requires skill, knowledge and experience to maintain financial records in an organized way.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views1 page

    Nature of Accounting - Acc140

    Uploaded by

    Regina Nyasha Linde
    Accounting involves collecting financial information to help various users make decisions. It is considered both a service activity and a profession that requires specialized education. As a social force, accounting protects public interests by providing reliable information that benefits society. Accounting serves as a language for reporting and communicating business information through numerical and textual representations. It has principles like double-entry bookkeeping and is both a science with set rules and an art that requires skill, knowledge and experience to maintain financial records in an organized way.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    NATURE OF ACCOUNTING

    The various definitions and explanations of accounting has been propounded by different accounting
    experts from time to time and the following aspects comprise the nature of accounting :

    i) Accounting as a service activity -accounting collects financial information for the various
    users for taking decisions and tackling business issues.
    ii) Accounting as a profession -A profession is a career that involve the acquiring of a
    specialised formal education through professional bodies before rendering any service.
    iii) Accounting as a social force-Under the changing business environment the discipline of
    accounting and the accountant both have to watch and protect the interests of other
    people who are directly or indirectly linked with the operation of modern business.
    Therefore, safeguarding of public interest can better be facilitated with the help of
    proper, adequate and reliable accounting information and as a result of it the society at
    large is benefited.
    iv) Accounting as a language -It is one means of reporting and communicating information
    about a business.. The expression, exhibition and presentation of accounting data such
    as a numerals and words and debits and credit are accepted as symbols which are
    unique to the discipline of accounting.
    v) Accounting as science or art. Accounting has its own principles e.g. the double entry
    system, which explains that every transaction has two fold aspect i.e. debit and credit. It
    also lays down rules of journalising. Accounting is an art as it also requires knowledge,
    interest and experience to maintain the books of accounts in a systematic manner.

    OBJECTIVES OF ACCOUNTING
    The following are the main objectives of accounting :
    1. To keep systematic records : Accounting is done to keep a systematic record of
    financial transactions. In the absence of accounting there would have been terrific
    burden on human memory which in most cases would have been impossible to bear.

    2. To protect business properties: Accounting provides protection to business properties


    from unjustified and unwarranted use in terms of assets, liabilities and capital. This
    Information helps the proprietor in assuring that the funds of the business are not
    necessarily kept idle or underutilised.

    3. To ascertain the operational profit or loss : Accounting helps in ascertaining the net
    profit earned or loss suffered on account of carrying the business.

    4. To ascertain the financial position of the business – Through preparation of the


    Balance Sheet which is a statement of assets and liabilities of the business on a
    particular date. It serves as barometer for ascertaining the financial health of the
    business.

    5. To facilitate rational decision making : Accounting these days has taken upon itself the
    task of collection, analysis and reporting of information at the required points of time to
    the required levels of authority in order to facilitate rational decision-making.

    6. Information System : Accounting functions as an information system for collecting and


    communicating economic information about the business enterprise.

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