Accounting Principles And Practices

The purpose of accounting is to provide the information that is needed for sound economic decision making. The main purpose of financial accounting is to prepare financial reports that provide information about a firm’s performance to external parties such as investors, creditors, and tax authorities. Accountancy or accounting is the art of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements that show in money terms that show the economic resources under the control of management. Accountancy is the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated. The communication is generally in the form of financial statements that show in money terms that show the economic resources under the control of management. The book discusses the basic concepts and techniques of financial accounting in a student-friendly manner.