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Accounting in the context of an information system entails the processes of identification, measuring as well as communicating the economic information with the needs of the users for decision-making. It aids in the identification of transactions as well as events about a certain value. In this context, a transaction entails an exchange that takes place in which every participant receives or else sacrifices a value. The events whether internal or external normally descn regard to a particular entity such as a raw material that is used in the production processes. An entity in this regard thus implies an economic unit that can undertake economic activities.

Thus, the definition of accounting is normally as an art that aids in the recording process, classification as well as summarizing in an important manner and the terms of transactions, money and events. The events are normally in the form of a financial character as well as assisting in the interpretation of the results. The various objectives of accounting include:

The maintenance of a systematic record in the sense that is is difficult to recall the various business transactions that are taking place.

  • Helps in ascertaining the outcomes of an operation in the form of the loss suffered as well as the profit that has earned over a particular period.
  • Accounting helps in the process of confirming the financial position that a business enjoys through the confirmation of the availability of cash as well as the position of assets and liabilities.
  • The liquidity position of a business normally portrayed by the use of accounting through the availability of the financial reporting.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in nursing writing services. If you need a similar paper you can place your order from best custom term papers.

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