MEANING OF ACCOUNTING

 

Accounting , as an information system is the process of identifying , measuring and communicating

the economic information of an organization to its users who need the information for decision making. 

It identifies transactions and events of a specific entity. A transaction is an exchange in which each 

participant receives or sacrifices value (e.g. purchase of raw material). An event (whether internal or 

external) is a happening of consequence to an entity (e.g. use of raw material for production). An entity 

means an economic unit that performs economic activities.