Its underlying purpose is to provide financial information. It is capable of being expressed in monetary terms.

It is writing down of business transactions chronologically in the books of account.

There are four aspects of accounting.

Included in the mechanical phase of accounting are interpreting, classifying and recording.

The aspects of accounting can be summed up to one basic function which is the generalization of relevant and timely financial information for interested parties.

This qualitative and quantitative financial data are not used by users relating to specific business decisions makes accounting the language of business.

There are three categories of accounting namely : assets, liabilities and owner's equity.

It is sorting similar and related business transactions into the three categories of account.

The data provided by accountants can assist investors, government agencies, creditors, and management in making sound decisions.