Understanding and Explanation of Basis of Accounting - Definition, Meaning, Function and Purpose of Accounting

Understanding and Explanation of Basis of Accounting - Definition, Meaning, Function and Purpose of Accounting

A. Understanding and Definition of Accounting

Accounting is the process of recording, classifying, summarizing, processing and presenting data, transactions and events relating to the finances so that it can be used by people who use them with an easy to understand for decision-making and other purposes.

Accounting accounting comes from foreign word that means when translated into Indonesian is to calculate or account. Accounting is used in almost all business activities around the world to make a decision that called the language of business.

B. Accounting Functions

The main function of accounting is a financial information of an organization. From the accounting statements we can see sutu financial position and its organizational changes that occur in it. Accounting made ​​qualitatively with the unit of measure of money. Information on finance urgently needed especially by the manager / management to help make decisions of an organization.

C. Accounting Basic Reports

Basically, the accounting process will make the output of the income statement, statement of changes in equity, and consolidated balance sheet of a company or other organization. On an accounting report must include company name, report name, and date of preparation or length of the report to facilitate other people understand it. Reports can be periodically and there is also a character of a particular time only.

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