Accounting
What
is
accounting?
The
American
Institute
of
Certified
Public
Accountants
has
defined
accounting
as
follows:
Accounting
is
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
a
financial
character,
and
interpreting
the
results
thereof.
It
is
significant
to
note
that
accounting
is
defined,
as
an
art
rather
than
a
science.
This,
of
course,
does
not
mean
that
accounting
does
not
strive
for
accuracy
in
reporting.
It
merely
means
that
accounting
is
flexible
in
the
sense
that
procedures
may
change
to
meet
changing
conditions.
Accountants
are
constantly
striving
to
establish
principles
and
guides
to
their
practice.
A
substantial
body
of
accounting
theory
has
evolved.
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