Accounting plays important role in assisting all forms of economic activity in the various sectors. Accounting is nothing but language of business which is helpful in business decisions. Without accounting, Business owner or managers would not know which products were successful, and which decisions were the right ones. With the help of an accounting, they would get an idea of how much to pay in taxes, capital required for further projects, whether to lease or buy an asset, and so on. Accounting also helps investors to understand how efficiently their capital or economic resources are being used.Accountancy is the flow or process of communicating financial transactions about a business entity. Generally, it is a communication in the form of financial statements like Balance sheet, income statement, cash flow etc. also we can say that it is an information system which identify, measures and communicates the economic/business information of an entity to its users who need the information for decision making. Accounting identifies financial transactions and business events of a specific entity.

eduCBA