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Business Definition for: accounting
Dictionary of Accounting Terms
accounting

  1. umbrella term encompassing the multitude of disciplines including auditing, taxation, financial statement analysis, and managerial accounting. Accounting-related functions include financial accounting, cost accounting, not-for-profit accounting, and financial planning.
  2. process of recording, measuring, interpreting, and communicating financial data. The accountant prepares financial statements to reflect financial condition and operating performance. Also, the accounting practitioner renders personal accounting services to clients such as preparing personal financial statements and tax planning.

Dictionary of Business Terms
accounting

system that provides quantitative information about the finances of a person or business entity. Includes recording, measuring, and describing financial information.

Dictionary of Insurance Terms
accounting
See also Generally Accepted Accounting Principles (GAAP)
Related Terms:
Generally Accepted Accounting Principles (GAAP)

standards, conventions, and rules accountants follow in recording and summarizing transactions, and in the preparation of financial statements. GAAP derive, in order of importance, from: (1) issuances from an authoritative body designated by the AICPA Council (for example, the FASB Statements, AICPA APB Opinions, and AICPA Accounting Research Bulletins); (2) other AICPA issuances such as AICPA Industry Guides; (3) industry practice; and (4) accounting literature in the form of books and articles. Principles also derive from tradition, such as the concept of matching. In the audit report, the CPA must indicate that the client has followed GAAP on a consistent basis.

Referring Terms:
accountancy
Copyright © 2005, 2000, 1995, 1987 by Barron's Educational Series, Inc., Reprinted by arrangement with Publisher.
 Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
 Copyright © 2000, 1995, 1991, 1987 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
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