5 Understanding Accounting According to Experts

Weaccounting - Understanding Accounting by experts - Whether realized or not, most of the information managers need is accounting information. This means that managers as corporate management leaders are required to have the ability to analyze and use accounting data.

Economic development is increasingly rapid, so it requires for economic actors to better understand the accounting that can provide financial information that is needed by information users in economic decision-making.

1. Definition of Accounting According to the American Institute of Certified Public Accountants

In 1941, the American accounting organization AICPA (American Institute of Certified Public Accounts) defines accounting as follows.

"Accounting is the art of recording, summarizing and classifying financial transactions and events in a particular way and in the form of a unit of money, and interpreting the results."

Based on these definitions there are three important aspects:

1. Accounting is a process, meaning the process of recording, classification, and summary of transactions.
2. Accounting is an activity to process financial transactions in a way or have a certain pattern (not arbitrary and disarrayed) and use the unit of money as a measuring tool.
3. Accounting is not just a process of recording and classification and summary, but also includes interpretation of the results of these processes.

2. Definition of Accounting by Accounting Principles Board (APB)

Then in 1970, the Accounting Principles Board (APB) defines.

"Understanding of accounting is a service activity. Its function is to provide quantitative information about economic institutions, especially those of a financial nature whose purpose is to be useful in making economic decisions. "

3. Understanding Accounting According to the American Accounting Association Subsequently, in 1966, the American Accounting Association defines accounting as follows:

"Accounting is the process of recognizing and measuring and communicating economic information to obtain appropriate considerations and decisions by users of accounting information."

Based on the above understanding contains two meanings among them

1. Accounting activities, that accounting is a process consisting of activities of identification, measurement an, reporting of economic information.
2. Accounting usefulness, that economic information generated by accounting activities is expected to be useful in making decisions regarding the unity of the business concerned.

4. Understanding According to George A. Mac Farland

George A. Mac Farland defines accounting as follows.

"Accounting is an art of recording, classifying, presenting as well as systematic interpretation of financial information of companies or individuals."

Based on the above understanding of accounting has the understanding that:

1. The procedures used in accounting such as record, classify, present and interpret.
2. Goals in accounting are financial data or events that are financial (financial).
3. The procedure of recording, classifying and presenting financial data should be arranged systematically so that it can be used to interpret and make a proper analysis of the reports made.

5. Definition of Accounting Through Two Viewpoints

The definition of accounting can be seen from two points of view, namely from the point of view of users of accounting services and definitions using the point of view of the process of its activities.

The definition of accounting from the point of view of users of accounting services

Accounting is a discipline or service activity that provides information necessary to carry out activities effectively and efficiently and evaluate transactions that are financial (financial) or the activities of a company.

The definition of accounting from the point of view of the process of its activities

Accounting is the process of recording, classification, summary, reporting and analyzing financial data of a company/entity. Accounting can be seen as a complex activity (involving various activities). So accounting should:

1. Identify data related or relevant to decision making.
2. Processing and analyzing relevant data.
3. Turning data into an information arrangement that is useful for decision making.

Thus the explanation of 5 Accounting Definition According to Experts. Hopefully useful to all readers. That is all and thank you.

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