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| 1. |
Characteristics of accountancy ? |
| Answer» Following attributes or characteristics can be drawn from the definition of Accounting:(1) Identifying financial transactions and events\tAccounting records only those transactions and events which are of financial nature.\tSo, first of all, such transactions and events are identified.(2) Measuring the transactions\tAccounting measures the transactions and events in terms of money which are considered as a common unit.(3) Recording of transactions\tAccounting involves recording the financial transactions inappropriate book of accounts such as Journal or Subsidiary Books.(4) Classifying the transactions\tTransactions recorded in the books of original entry – Journal or Subsidiary books are classified and grouped according to nature and posted in separate accounts known as ‘Ledger Accounts’.(5) Summarising the transactions\tIt involves presenting the classified data in a manner and in the form of statements, which are understandable by the users.\tIt includes Trial balance, Trading Account, Profit and Loss Account and\xa0Balance Sheet. | |