Accounting is the process of recording, classifying, summarizing, analyzing, and communicating the financial information of the business firm. It is wider than bookkeeping. Four functions of accounting are as follows:
- Keeping a complete and systematic record of financial transactions.
- Determining the profit and loss of the business firm.
- Ascertaining the true financial position of the business firm.
- Communicating the result of the business firm to various users.