Understanding Accounting According to Experts Complete With Its History: Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and in events related to finance. Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and in financial-related events that can be used by people who use them easily understood in making a decision and other objectives.
Understanding of Accounting in General
Accounting is often referred to as a business language, or more accurately, the language of decision making. The more someone masters this language, the better the person will handle various aspects of finance in his life. The definition of accounting can be formulated through 2 (two) points of view, namely the definition from the point of view of the users of accounting services and the definition from the perspective of the process of its activities.
From the point of view of users of accounting services, accounting can be defined as a scientific discipline and / or service activity that provides information needed to carry out activities efficiently and evaluate the activities of an entity or financial transactions. The usefulness of accounting information is to:
Make effective planning, as well as supervise, and make appropriate economic decisions by management
The responsibility of the entity to investors, creditors, the government, and so on.
If viewed from the perspective of the process of its activities, accounting can be defined as the process of recording, classifying, summarizing, reporting and analyzing the financial data of an entity. From this it can be seen, that accounting is a complex activity, involving a variety of activities, so basically accounting must:
Identify which data is relevant or relevant to the decision to be taken,
Process or analyze relevant data,
Turn data into information that can be used for decision making.
From the above definition, we can simply explain that accounting can produce information that is used by managers to carry out company operations. Accounting also provides information to interested parties to find out the financial performance and condition of the company.
Understanding of Accounting According to Experts
Here Is An Understanding Of Accounting According To Experts.
1. ABP Statement No. 4 in Smith Skousen (1995: 3)
Defining Accounting is a service activity that provides quantitative information, especially those that have the nature of making economic decisions in making decisions that make logical choices among alternative actions.
2. American Accountants Association
Stating that Accounting is a piece, estimation, and reporting of financial data, which allows an assessment and choice to make clear and decisive for individuals who utilize data.
3. Frederich D.S. Choi, Gerhard G. Mueller
Accounting is a process of identifying, measuring and communicating economic information to enable users to make judgments and decisions.
4. Soemarsono S.R (2004)
Accounting is the process of identifying, measuring and reporting economic information to enable clear and explicit assessments and decisions for those who use that information.
5. S. Munawir (2005)
Accounting is an art rather than recording, classifying and summarizing events and events and at least financial nature in the most expeditious way and as directions or expressed in money, as well as interpreting the things that arise from it.