*** It is important to know the explanation of Accounting for facing job interview or university final viva. I am gonna give some explanations which can be memorized for interview.
1. Generally Accounting means "keeping records of financial transactions".
2. Accounting is the process of sorting, classifying , summarizing, recording financial transactions plus storing & retrieving and presenting the information in various reports and analyses.
3. It is a systematic process of collection of documents, analyzing those documents, identifying/checking transactions, classifying , recording on software, verifying entries, summarizing, measuring, interpreting and providing financial information to stakeholders.
It helps to provide statement of profit or loss account for a given period, and the value and nature of an organization's assets, liabilities and owners' equity.
Father of Accounting is Luca Pacioli. In 1494 he published a book on double-entry accounting. He did not invent the system. Instead, he simply described a method used by merchants in Venice during the Italian Renaissance period.
