The following are the characteristics of accounting:
1. In accounting system, only those transactions which are related to money are recorded in the books of accounts. Non-monetary transactions like strikes are not recorded in the books of accounts.
2. Accounting is an art of recording business transactions in the books of accounts maintained as per specific rules and principles.
3. In accounting process, those transactions relating to particular nature are recorded in separate accounts, so it is a process of classifying business transactions.
4. Accounting is an art of summarizing all business transactions as it includes the act of balancing ledger accounts, preparing trial balance and finally final accounts.
5. Accounting includes analyzing and interpreting the financial data to compare such results with that of previous years.
1. In accounting system, only those transactions which are related to money are recorded in the books of accounts. Non-monetary transactions like strikes are not recorded in the books of accounts.
2. Accounting is an art of recording business transactions in the books of accounts maintained as per specific rules and principles.
3. In accounting process, those transactions relating to particular nature are recorded in separate accounts, so it is a process of classifying business transactions.
4. Accounting is an art of summarizing all business transactions as it includes the act of balancing ledger accounts, preparing trial balance and finally final accounts.
5. Accounting includes analyzing and interpreting the financial data to compare such results with that of previous years.
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