HBC 2101: Nature, purpose and scope of accounting

Institution JKUAT
Course Information Technolo...
Year 1st Year
Semester Unknown
Posted By Jeff Odhiambo
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Pages 10 Pages
File Size 110.52 KB
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Description

Accounting may be defined as the process of collecting, recording, summarizing and communicating financial information. Accounting is nothing but a means of communicating the results of business operations to varies parties interested in or connected with the business, viz., the owner, creditors, investors, government, financial institutions and other agencies. Accounting is, therefore, rightly called as the language of business. The basis purpose of a language is to serve as a means of communication. Accounting also serve this purpose. Accounting is not only associated with business but also with every body who is interested in keeping an account for the money received and money spent.
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