Concept And Meaning of Account

Generally ,book-keeping is the first stage of Accounting. Accounting begins when book-keeping ends. It means the term ‘Accounting’ has a broader meaning as compared to Book-Keeping. Book-Keeping is mainly concerned with systematic and scientific recording of business transactions and their classification. But Accounting goes beyond this and further includes summarizing ,analysis identifying,measuring,recording
,classifying,summerizing,analysing,intreprenting the financial transactions and communicating the results thereof to the persons interested in such information. Accounting is also known as Language of Business and language is a means of communication.

It involves collecting ,recording, classification and presentation of financial transactions for the benefit of internal and external users. It is a discipline which records, classify, summerises and interprets financial information about activities of the concern so that intelligent decisions van be made about the concern.

So, we know that accounting is the process of analysing and comparing the day to day financial transactions. Here, only the financial transactions are recorded.