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Accounting

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Definition:

Accounting is a field of study as well as the information system that identifies, records, and communicates the economic events of an organization to an interested user. Interested users include internal parties such as employees. Interested users also include external users such as stockholders.

Accounting may also be defined as setting up, maintaining, and auditing the books of a business and preparing reports based on this information.

The disciplines of accounting and finance are tied together in a business organization. Accounting usually generates the numbers and financial statements for the finance department who uses them for the purposes of financial analysis for the company.

There are several areas of accounting: financial accounting, managerial accounting, cost accounting, governmental accounting, forensic accounting, just to name a few.

Pronunciation: uh-kou-ting
Also Known As: justification, explanation, inventory, statement, rationale, chronicle
Common Misspellings: akounting
Examples:

The Director of the Accounting Department of XYZ Corporation is the Controller.

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