What Are The Various Functions Of Accounting?

1.	What Are The Various Functions Of Accounting?
Answer» Recording: Accounting records business transactions in terms of money. It is essentially concerned with ensuring that all business transactions of financial nature are properly recorded. Classifying: Accounting also facilitates classification of all business transactions recorded in journal. Items of similar nature are classified under appropriate heads. Summarizing: Accounting summarizes the classified information. It is done in a MANNER, which is useful to the internal and external users. Internal users interested in these information’s are the persons who MANAGE the business. Interpreting: It implies analyzing and interpreting the financial DATA embodied in FINAL accounts. Interpretation of the data HELPS the management, outsiders and shareholders in decision making.

Answer»

Recording: Accounting records business transactions in terms of money. It is essentially concerned with ensuring that all business transactions of financial nature are properly recorded.
Classifying: Accounting also facilitates classification of all business transactions recorded in journal. Items of similar nature are classified under appropriate heads.
Summarizing: Accounting summarizes the classified information. It is done in a MANNER, which is useful to the internal and external users. Internal users interested in these information’s are the persons who MANAGE the business.
Interpreting: It implies analyzing and interpreting the financial DATA embodied in FINAL accounts. Interpretation of the data HELPS the management, outsiders and shareholders in decision making.

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