Define accounting ? What are the objectives of accounting ?

Answer 1

Accounting is a set of concepts and techniques that are used to measure and report financial information about an economic unit. The economic unit is generally considered to be a separate enterprise. The information is potentially reported to a variety of different types of interested parties. These include business managers, owners, creditors, governmental units, financial analysts, and even employees. In one way or another, these users of accounting information tend to be concerned about their own interests in the entity. Business managers need accounting information to make sound leadership decisions. Investors hold out hope for profits that may eventually lead to distributions from the business (e.g., "dividends"). Creditors are always concerned about the entity's ability to repay its obligations. Governmental units need information to tax and regulate. Analysts use accounting data to form their opinions on which they base their investment recommendations. Employees want to work for successful companies to further their individual careers, and they often have bonuses or options tied to enterprise performance. Accounting information about specific entities helps satisfy the needs of all these interested parties.

The Objective of Financial Statements (from the Framework to the IFRS)

8. The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions.

9. Financial statements prepared for this purpose meet the common needs of most users. However, financial statements do not provide all the information that users may need to make economic decisions since they largely portray the financial effects of past events and do not necessarily provide non-financial information.

10. Financial statements also show the results of the stewardship of management, or the accountability of management for the resources entrusted to it. Those users who wish to assess the stewardship or accountability of management do so in order that they may make economic decisions; these decisions may include, for example, whether to hold or sell their investment in the enterprise or whether to reappoint or replace the management.

Answer 2

Accounting is a way of forecasting the future, planing and budgeting to direct a companies finances. The do short and long term projections on operations and potential operations to control things like taxes, cash flow, man power requirements.
Bookkeepers are the opposite they record what already happened, write pay checks, pay bills, record purchases and sales, reconcile bank accounts, make adjusting journal entries and write financial statements.
I have worked in accounting and bookkeeping for 33 years and have seen a company go out of business because the long term forecast was for a loss even when they haven't had a loss year yet. They had 5 branches and 2 had losses but the industry was dieing. Without the budgets they might not have seen it coming.

Answer 3

Management is the act of running a company or an organization. Accounting is the act of recording financial transactions of a company or an organization.

Answer 4

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