Scope of Accounting
First, of all a business financial transaction requires to understand in depth Knowledge of Scope and Nature in Accounting.
In a Business Scope and Nature of accounting is a dynamic process.
All businessman concerned with business, trade, and commerce.
Accounting is a term using business financial needs and daily transaction.
The scope of accounting is wide and extend in business.
This makes simple in Business, Trade, Government, Financial institutions,
Sole proprietor or individuals even more families business needs every sector.
Accounting scope and nature is spread over in all the sphere of the business.
Profit earning likewise professional activity take place accounting in a financial transaction.
Transaction when they occurred and the essentials of finding result Net profit, Net loss,
The needs most noteworthy of identifying interpretation and communication of all that formation above all problem only accounting help in overcoming
In Accountant huge data in business, create arises the needs for Recording and Summarizing.
Modern Uses :
Nowadays in the modern world, the term accounting system is practiced
not only in small business or big business but also many Non Trading institutions like School, Colleges certainly use.
Hospitals, Co-Operative society etc, also Government works for Self Local Government.
Similarly many professional persons like Chartered Accountants, The medical practitioner, Lawyer use this easy suitable accounting
Nature of Accounting
Accounting is an Art :
Art is a technique because of maintaining financial records on cash accrual basis.
In an Art of Recording, Classifying and Summarizing the Financial transaction of business.
Present and finalizing the financial data Data into related information in a significant manner.
Accounting is Science :
It is not only a Science but also an Art. Any organized knowledge based on certain basic Principles is known as Science.
Organised knowledge was developed through experience and study,
it is a special subject after lots more experiments, testing like in Physics and
Chemistry then the result can be carried and perfect conclusion can be drawn.
Accounting is Social Science :
Social Science means like a Human Nature, depending upon human behavior, social and other economic factors.
Likewise, Social Science creates a relationship of Cause and Effect about any occurrence will happen.
Its based on testing of Fact, Observation, and Experiment.