Accounting is the process of classifying, recording and summarizing business transactions in monetary units and interpreting the financial data of a business in order to assist stakeholders in making decisions.
- Classifying - accounting data from business document are arranged and categorized.Examples of business document are receipts,invoices and cash bill.
- Recording - transactions are recorded in journals and ledgers.
- Summarizing - accounting data for a particular period is summarized in the form of financial statement. Examples of financial statement are Trading Accounts,Profit and Loss Accounts and Balance Sheets.
- Analysing and Interpreting - financial statement analysed and the result of the analysis is used as a guide to make decision.
