Q.Define Accounting.

Accounting is the process of recording, classifying, summarising and communicating a business's financial transactions to help users make decisions.

Definition: Accounting is the systematic process of identifying, recording, classifying, summarising, analysing, interpreting and communicating the financial transactions and events of a business to interested users.

The widely accepted definition (American Institute of Certified Public Accountants) describes accounting as "the art of recording, classifying and summarising in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character, and interpreting the results thereof."

In short, accounting:

• Records financial transactions in the books of account.
• Classifies and summarises them into meaningful statements. …