Meaning & Definition of word "Accounting"

Accounting

/əˈkaʊntɪŋ/

1. the process of recording, classifying, and summarizing financial transactions to provide useful information for stakeholders.
- Example: After completing her degree, she secured a job in the accounting department of a large corporation.
2. the systematic recording and reporting of financial transactions and the maintenance of financial records.
- Example: Accounting standards must be followed to ensure the accuracy of the financial statements.
3. the profession or field of study related to the management of financial accounts.
- Example: He decided to pursue a career in accounting due to his interest in finance.
4. the calculations involved in financial reporting and budgeting.
- Example: The accounting for the project showed a significant variance from the initial budget.
5. the practice of tracking and managing finances and resources.
- Example: Proper accounting practices are essential for the sustainability of any business.

●Derived from the Old French 'aconter' meaning to count or to reckon, from 'a' (to) + 'conter' (to count).

managerial accounting:

A type of accounting focused on internal reporting and decision-making.

financial accounting:

Accounting aimed at providing financial information to external users.

tax accounting:

The accounting method used for tax purposes, ensuring compliance with tax laws.

accountant:

A professional who maintains and audits financial records.

audit:

An official inspection of an individual's or organization's accounts.

financial statement:

A formal record of the financial activities of a business.

Meaning: Crunching numbers

● Example Sentence: He's good at crunching numbers; he works in accounting.

Meaning: Number cruncher

● Example Sentence: As a number cruncher, she handles all the accounting tasks.