1
Accounting is defined as the language of business, used by organizations to communicate financial information to interested parties.
2
Accounting is a systematic process consisting of seven key activities: Identifying, Measuring, Recording, Classifying, Summarizing, Analyzing and Interpreting, and Communicating.
3
The recording phase uses 'Journal' as the book of original entry, where financial transactions are first entered.
4
The classifying phase involves grouping similar transactions together in a book called the 'Ledger'.
5
Summarizing is performed using statements like Trial Balance, Trading and P&L Account, and Balance Sheet.
6
The three main branches of accounting discussed are Financial Accounting, Cost Accounting, and Management Accounting.