This section Covers..
01. Meaning of Accountancy
02. What is Financial Statement?
03. How to prepare financial statements?
04. Who are AICPA and what they mean?
05. Major Part of Accounting

Meaning
Accountancy or accounting is the art of communicating financial information about a business entity to users such as shareholders and managers. The communication is generally in the form of financial statements

What is Financial Statements?
Such financial statements is primarily used by lenders, managers, investors, tax authorities, and other decision makers to make resource allocation decisions between and within companies, organizations, and public agencies.

How to prepare Financial Statements?
It involves the process of recording, verifying, and reporting of the value of assets, liabilities, income, and expenses in the books of account (ledger) to which debit and credit entries (recognizing transactions) are chronologically posted to record changes in value

Who are AICPA and what they mean?
American Institute of Certified Public Accountants (AICPA)    
Accounting has also been defined by the AICPA 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 character, and interpreting the results thereof."

• Financial accounting is "a major branch of accounting involving the collection, recording and extraction of financial information, and the summary of it in the form of a periodic profit and loss account, a balance sheet and a cash flow statement in accordance with legal, professional, and capital market requirements".
  
• Management accounting is another branch of accounting performed within an organization to provide information only accessible to its decision-makers.
  
• Open-book accounting is an accounting principle that aims to improve accounting transparency of organizations.
  
• Tax accounting is the accounting needed to comply with jurisdictional tax regulations.
  
• Accounting scholarship is the academic discipline which studies the theory of accountancy.

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