what is accounting?

Answer 1

The Nature of Accounting

Accounting is the identification, measurement and communication of financial information about economic entities to interested persons (Kieso and Weygandt)
- Arose from the need to communicate financial information
- Not derived from first principles
- Financial Accounting Standards Board (FASB) is authoritative rule making body

Underlying Assumptions
Key Assumptions -
- Accounting entity
- Double entry
- Timing-matching principal
- Accrual accounting
- Historical cost