What is Accounting, its importance and types?
Accounting is a phrase that represents the process of compiling all of a company's financial information into a single location in order to make it simple and straightforward for all of the company's stakeholders and shareholders. The primary objective of accounting is to record and report the financial transactions, financial performance, and cash flows of an organisation. The dependability of financial accounts is significantly improved by accounting standards. The income statement, the balance sheet, the cash flow statement, and the statement of retained earnings are the components that comprise the financial statements. The standardised reporting makes it possible for all of a company's stakeholders and shareholders to evaluate the company's performance. It is necessary for there to be complete candour, dependability, and precision in financial reporting. Importance of Accounting 1. Maintains a record of financial and economic dealings Accounting is essential becau...