What do you mean by accounting? Give its definition.
Options
A
B
C
D
For any discrepancies in this question, email contact@cadada.in
Theoretical FrameworkQ-1 | Meaning and Scope of AccountingQuestion 4934 of 110
All Questions Correct Answer
✅ Option — Correct Option
All Options:
- A
- B
- C
- D
Detailed Solution & Explanation
According to AICPA, "Accounting" is the art of recording, classifying and summarizing in
a significant manner and in terms of money, transactions and events which are, in part at
least, of a financial character, and interpreting the results thereof.
From the above, it is clear that accounting refers to:
1. A procedure of writing financial transactions and events.
2. A system of recording, classifying, summarizing, analyzing, interpreting and
reporting periodically, in terms of money, which provides necessary financial
information.
The said financial information is used for taking necessary and proper deci- sions about
the allocation of economic resources and running the organisation successfully.
Accounting accumulates data systematically and supplies the necessary infor- mation to
the users of financial statements by which the users can take proper economic decisions
and also may make proper predictions, i.e., in short, it conveys financial information about
an entity for a specified period.
More Questions from Theoretical Framework
What do you mean by accounting? Give its definition.
What are the branches of Accounting? Explain. OR What are the sub-fields of Accounting? [Dec 2023]
Limitations of accounting
Functions of accounting data. [Jan. 2025, 4 Marks]
Differentiate between Book keeping and Accounting. [Sept. 2024, 4 Marks]
Capital is all assets less fictitious assets.
Ready to Master Theoretical Framework?
Practice all 110 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.
Start Practicing — It's Free