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description of accounting

Accounting is Book-Keeping plus summarising and interpreting business transactions of financial nature. Accounting at present is accepted as information system and decision making activity. Book-keeping is the proper and systematic maintenance of the books of accounts. Accounting begins where book-keeping ends. Accounting is responsible to show the true/fair position of the business enterprise. If it fails in the same, it means that some frauds must have been done. Accounting is called the language of business intends to communicate relevant and reliable information to internal and external user groups by developing reports and statements. Accounting is generally divided into two parts -
- Theory Base of Accounting - It includes "Generally accepted accounting principles and accounting standards."
- Practical Base of Accounting - It includes "Double entry book-keeping system."

Accounting at present is further divided as under:
1.  Financial Accounting
2. Cost Accounting
3. Management Accounting
4. Tax Accounting
5. Social Responsibility Accounting


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