Accounting is a difficult term to define. However, it is formally defined by the American Accounting Association as “The classification and recording of monetary transactions, the presentation and interpretation of the results of those transactions in order to assess performance over a period and the financial position at a given date, and the monetary projection of future activities arising from alternative planned courses of action”. Using this definition, accounting can be seen to be about the identification and recording of business transactions as a way of assisting the management and planning of a business.


reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u