Definition of Accounting

According to A. W. Johnson; “Accounting may be defined as the collection, compilation and systematic recording of business transactions in terms of money, the preparation of financial reports, the analysis and interpretation of these reports and the use of these reports for the information and guidance of management”.

According to the American Institute of Certified Public Accountants [AICPA]; “Accounting is the art of recording, classifying and summarizing in a significant manner and terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the result thereof”.

According to the American Accounting Association [AAA]; “Accounting refers to the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information”.