A DOUBLE ENTRY ACCOUNTING SYSTEM MEANS PROFESSIONAL

A DOUBLE ENTRY ACCOUNTING SYSTEM MEANS PROFESSIONAL

Today, accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. The double-entry accounting system in use today was developed in medieval Europe, particularly in Venice, and is usually attributed to the Italian mathematician and Franciscan friar Luca Pacioli. Accounting information systems are designed to support accounting functions and related activities.Īccounting has existed in various forms and levels of sophistication throughout human history.

The recording of financial transactions, so that summaries of the financials may be presented in financial reports, is known as bookkeeping, of which double-entry bookkeeping is the most common system. Management accounting focuses on the measurement, analysis and reporting of information for internal use by management. Financial accounting focuses on the reporting of an organization's financial information, including the preparation of financial statements, to the external users of the information, such as investors, regulators and suppliers. Īccounting can be divided into several fields including financial accounting, management accounting, tax accounting and cost accounting. The terms 'accounting' and ' financial reporting' are often used as synonyms. Practitioners of accounting are known as accountants. Accounting measures the results of an organization's economic activities and conveys this information to a variety of stakeholders, including investors, creditors, management, and regulators. Accounting, also known as accountancy, is the processing of information about economic entities, such as businesses and corporations.

A double entry accounting system means