define accounting.what do you understand by phrases in terms of money and pf financial character often used in definition pf accounting?
Payal, Accounting is the process of recording, summarising, analysing and reporting the data or financial transactions pertaining to a certain Organisation or anything. Accounting can be as small as of a family or as big as a Company. Anything that has value and can be used as a means of financial exchange is called Money. This is used as a legal tender for repayment of debt, retain our purchase power. It is also a standard of value and an unit of accounting measure. Financial character is the feature of a financial transaction. Financial character primarily involves flow of cash and is measured in the terms of money. You cannot record every transaction in the accounting. For example, only those transactions which involve money and cash flow are recorded. Now this is a financial character.
