Accounting may be defined as the science as well as the art of recording financial transactions under appropriate accounts. The American Institute of Certified Public Accounts has define Accounting as “the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which in part, at least of a financial character and interpreting the results thereof ” From the above definition, we attribute the following Accounting emerge:
It is an art of recording financial transactions.
It is an art of making summaries and analyses the financial transactions.
It is an art of interpreting the results of the financial transactions and communicating the results to the persons who are interested in it.