Features of Accounting.

1. Recording
Accounting is the art of recording of transactions. Only business relative transactions are recorded in which money is mentioned. All transactions are recorded in detail. Both journal and subsidiary books are used for this.

2. Classifying

Accounting’s main feature is also classifying all business transactions. Accounting makes the group of all similar accounting entries in one place. For example, all receipts and payments will be shown in the cash book. So, all transactions are collected under one common head. This system is also called classification of transaction. This process is completed by opening accounts in books. These books are called a ledger.

3. Summarizing

Summarizing is the art of showing business results in summarized form. After this, it can use for all the interested parties. This feature tells about financial statements. One is Trading and profit and loss account and the other is the Balance Sheet.

4. Interpreting

By interpreting, we can know whether the position of profitability is good or bad. By knowing this, we can estimate the business’s performance.

Feature of accounting is; Transactions are recorded in-terms of money.