Definitions of accounting

Before attempting to define accounting, it may be added that there is no unanimity among accountants as to its precise definition. However, some of the definitions are as given below.

According to L.C.Copper, “Book-keeping may be described as the science of recording transactions in money or money’s worth in such a manner that, at any subsequent date, their nature and effect may be clearly understood, and that, when required, a combined statement of their result may be prepared”.

R.N.Carter defines Book-keeing as “Book-keeping is the science and art of correctly recording in books of account all those business transactions that result in the transfer of money or money’s worth”.

Yet another definition is given by A.H. Rosenkampff. According to him, “Book-keeping is the art of recording business transactions in a systematic manner”.

Out of the above and many more others, the most acceptable one is that given by American Institute of Certified Public Accountants (AICPA) Committee on Terminology. According to AICPA “Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of a financial character and interpreting the results thereof “.

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