The word "Accounting" is as old as money. It is a foot print as back as ancient civilization of Samaria Egypt and Babylonia. Accounting is a science that provides meaningful information about the company’s financial status. Accounting in a layman’s sense can be understood as an art of recording, classifying, summarizing, interpreting and communicating the financial transactions of a business organization.The goal of every business firm is to make a profit. Every business concern must know its financial position its assets, liability and its investments in the business. So one needs to have knowledge of whether his business is in the state of profit or loss. Thus, Accounting aims to keep a track of records of the organization in an alphabetic manner. It indeed helps to ascertain the financial position of the firm by evaluating the profit and losses. Accounting information recalls the financial position of the organization to several beneficiaries such as proprietor, Management, creditors, government authorities, and the actual share holders who have invested in the firm. Perhaps, maintaining this Accounting information the firm or any organization is actually into a state where it can determine the state of profit and losses and ensure certain changes in their business activities so as to increase the productivity of the organization and maximize their profits. |