Q1. Define Accounting Explain it Nature and Scope of Accounting. Ans: Accounting may be defined as the process of collecting, recording, summarizing and communicating financial information. Accounting is nothing but a means of communicating the results of business operations to varies parties interested in or connected with the business, viz., the owner, creditors, investors, government, financial institutions and other agencies. Accounting is, therefore, rightly called as the language of business. The basis purpose of a language is to serve as a means of communication. Accounting also serve this purpose. Accounting is not only associated with business but also with every body who is interested in keeping an account for the money received and money spent. American Institute of Certified Public Accountants (AICPA) defined accounting in 1961 as follows : Accounting is the art of recording, classifying and sum marising , in a significant manner, and in te...
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