What Is Accounting? (3)
Accounting is the systematic and comprehensive recording of monetary transactions pertaining to a enterprise, and it also refers to the process of summarizing, analyzing and reporting these transactions to oversight agencies and tax collection entities. The reports generated by many streams of accounting, such as cost accounting and management accounting, are invaluable in assisting management make informed business decisions. GAAP is a set of requirements connected to balance sheet identification, outstanding share measurements and other accounting problems, and its standards are based on double-entry accounting, a process which enters each expense or incoming income in two locations on a company’s balance sheet.