Question

Accounting "The science of producing unreliable facts from reliable figures.” what does it mean by that?

Answer 1

This quote is originally quoted by Mr Evan Esar ,an American humorist about "statistics", although the same could be borrowed for accounting as well.

In simple terms we could say that , Accounting is the process of recording financial transactions pertaining to a business which involves processes such as summarizing, analyzing, and reporting of the business transactions to oversight bodies, regulators, and tax collection entities.

Hence from the above mentioned sentence it is clear that the basis of the reporting done to the government / oversight bodies / tax agencies is the Accounting . As a result the businesses or organisations can falsify their accounting records in order to avoid paying of taxes or for any such other fraudulent intentions . Hence we could say that accounting is a science of producing unrealisable facts ( wilful deviation ) from reliable figures( actual transactions )  .