Question

What is accountancy and what kind of information provide?

Answer 1

Accounting is defined as the systematic process of identifying, recording, classifying, summarising, interpreting and communicating information about financial transactions to the users of the accounting information such as the owners, government, investors, creditors etc.

It provides the following information:

1. Resources available in the firm.
2. The means employed to finance those resources
3. Results achieved by using those resources.

Accounting is the art of recording, classifying, and summarizing financial transactions and events.