Introduction to account

Account:

Accounting is the art of collecting, analyzing, classifying and reporting monetary terms and information about business. 

* Functions of Accounting:

1. To keep complete, permanent and systematic records.
2. It helps to protect the properties of the organization from theft and misuse.
3. To prepare final accounts.
4. To supply the information to interested parties.
5. To serve as base for auditing.

Accounting process/Accounting cycle:


It is a complete sequence of accounting activities that are started with the primary entry of transaction into journal and ends with the preparation of final accounts. Accounting process includes recording, classifying, summarizing and interpreting of financial transactions.
Representing the components of accounting process/cycle.