Introduction of Accountancy

Introduction of Accountancy:-

 Each Person on earth is making the financial activities in his/her life earns money, making expenses, Investing theme in different kind of assets and other businesses. And maintain his books directly or indirectly (without making books or other records), by this way he/she calculate his worth.

Definition and meaning:-

 In 1961,The American Institute of Certified Public Accountants (AICPA) defines accounting as:-

  “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 financial characters, and interpreting the results thereof.”

In the above definition the meaning of Accounting is introduction of the transactions and recording significant manner. This kind of record maintaining done by way of in primary books or journals it’s called as books of accounts.
 Thus, the given definition do not reflect today’s accounting functions, now the concepts of accounting are bigger. For that In 1966, American Accounting Association Defined Accounting in different way which is widely accepted by experts they defined accounting as:-
 "The process of identifying, measuring and communicating economic information to permit informed judgment and decisions by the users of account.’’
 And In Earlier days in 1970’s, According to Accounting Principal Board of The American Institute of Certified Public Accountants (AICPA) explains Function of accounting as :-
“The Function of accounting is to provide quantitative information primary of financial nature, about economic entities, that is needed to be useful in making economic decision.”

In the above, I tried to explain meaning of accountancy on short term. Please send feedback on it or your suggestion to improve it.