Accounting means the various technical activities performed by accountants, including financial accounting, book keeping and management accounting.
Accounting is considered to be as old as money. However, Luca Fra Pacoili, an Italian, is universally regarded as the father of modern system of accounting or double entry system of accounting.
Accounting has been referred to as “the language of business” because of its role in maintaining and processing all relevant financial information that an entity requires for its managing and reporting purposes.
Accounting to American Institute of Certified Public Accountants (AICPA) :
Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money transactions and events which are, in part at least, of a financial character and interpreting the results thereof.