Overview of Accounting

What is accounting? Perhaps accounting familiar to our ears because many people recognize that accounting is the language of business. American Accounting Association defines accounting as the process of identifying, measuring and reporting economic information to allow assessment and decisions clearly and firmly to those who use information. In this definition contains two terms, namely:

1.  Accounting activities. That accounting is a process consisting of identification, measurement and reporting of economic information.
2.  Usefulness of accounting. That order in the accounting information generated is expected to be useful in assessment and decision making regarding the business entity concerned.

The main purpose of accounting is to present the economic information to provide information to the user information that is used as a material balance for decision by the company internally and externally. To produce accounting information quality, companies must have a method of recording, classification analysis, and control of financial transactions in company activities and more. there is little difference between the accounting and bookkeeping. Bookkeeping only recording, while accounting is a method of recording that includes the identification and communication. accountants typically lead and supervise the work of a bookkeeper. The bigger the company, then the more levels of the division of responsibilities and authority yanng contained in the company. The field of accounting include, financial accounting, auditing, management accounting, cost accounting, tax accounting, information systems, budgeting, and accounting administration. Accounting process consists of transactions, record keeping, classification, pengikhtisaran, accounting reports, analyze and interpret and last is the user's accounting information.