Accounting

Accounting is the measurement, description, or the provision of assurance about information that will help managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and government agencies. Accounting is the art of measuring, communicating and interpreting financial activity. Broadly, accounting is also known as the "language of business". [1] Accounting aims to prepare an accurate financial reports to be used by managers, policy makers, and other interested parties, such as shareholders, creditors, or owners. Recording daily involved in this process is known as bookkeeping. Financial accounting is a branch of accounting in which financial information is recorded on a business, classified, summarized, interpreted, and communicated. Auditing, a related discipline but remain separate from the accounting, is a process whereby an independent examiner examining an organization's financial statements to give an opinion or opinions - a reasonable but not fully guaranteed - about the fairness and compliance with accounting principles generally acceptable.

Accounting practitioners known as accountants. Certified accountants have a certain degree different in each country. An example is a Chartered Accountant (FCA, CA or ACA), Chartered Certified Accountant (ACCA or FCCA), Management Accountant (ACMA, FCMA or AICWA), Certified Public Accountant (CPA) and Certified General Accountant (CGA). In Indonesia, a certified public accountant is a CPA Indonesia (formerly: BAP or Certified Public Accountant).

Modern Accounting

The heart of modern financial accounting is the bookkeeping system pairs. This system involves making at least two entries for each transaction: a debit in one account, and a related credit to another account. The total flow must always be equal to the amount of credit overall. This will facilitate the examination if something goes wrong. This method was first known use in the Middle Ages in Europe, although there is also the opinion that this method has been used since ancient Greece.

Critics say that the standard accounting practice not much changed from the first. Accounting reforms in various forms always occur in each generation to maintain the relevance of accounting in capital assets or production capacity. However, this does not change the basic principles of accounting, which is expected to not depend on such economic effects.