What is Accounting?
A simple definition of financial or financial records. Not all transactions must be recorded. Mostly, only business transactions are recorded, personal transactions are rarely recorded by individuals.
For example, buying a book for $ 10. Enter the book vendor for $ 10; get the book and receipt for $ 10. Do not throw away more often; you just want to read the book. However, the book vendor does business, so the transaction will be recorded.
The book vendor records $ 10 in cash for sale and will be the total amount of cash sales at the end of the day. It's easy to count your money on the less of the floating amount at the beginning of the day and you will have full sales of the day. The book seller has a problem, how many books have been sold, what books have been sold, and there is a profit for the day?
Important? This is where the book seller wants to continue the business. This is where the accounting system or process becomes a bit more complicated.
The book seller must now find some things to do. How many books have been sold are relatively easy, 45 transactions for the day, so today 45 books have been sold. This is unlikely for $ 10, so the book vendor needs an accounting system to record or display the data. This accounting system shows what books were sold at what price and how many were sold
The book vendor needs this information because tomorrow will be more sales. If there were 10 books of "Book 1" today and four were sold, then tomorrow there will only be six on the shelf. If they sell four more tomorrow, there will be two left tomorrow. If customers buy "Book 1," they will be placed in the bookstore and will not be available, they will go elsewhere to get it.
You can wait a week to get more books after ordering. the bookkeeping system must show the seller of the book if several books need to be ordered, not just how many prices have been sold and at what price. In the "Book 1" example, the book vendor needs more books that arrive tomorrow or at the beginning of the day so the sale of the book is not taken away. The new book order should have been one week away to avoid losing books.
How much did the book seller pay for books? This information must be available to show whether there is any profit. A simple transaction for a $ 10 sale is not so easy for a book vendor
Accounting is a lot more than simply recording a financial transaction. Accounting should be able to provide more information than the financial amount of a transaction.
Better definition would be to capture all aspects of a financial transaction from financial, physical and non-financial information points.
Keep in mind that not all transactions are completely money, so even a better definition is not complete when it comes to accounting definition. Accounting involves so many different business areas that the definition will always be open to debates, especially among accountants.
Source by sbobet