What is the purpose of accounting?

Answer by  lgk (2426)

Accounting helps you make and maintain a budget, as well as keep track of all spending and income you have. For example, if you make 500 a week and have 1200 in bills, it can help you figure out how much of each check to save and have for gas.

Answer by  Kurt (4579)

Accounting keeps track of the financial information of an entity so that management can make better decisions and the company's financial status can be measured.

Answer by  dooney (222)

Accounting serves to keep an historical account of transactions, to check on the accuracy and validity of those transactions, to keep a record of money owed, and money due and to assess the value of things owned. By means of accounts the financial health of a business or organization can be realized and the viability of an adventure ascertained.

Answer by  ringneck (394)

Its purpose is to keep track of assets and liablities as well as income and expenses. By organizing the information, reports can be prepared that will help those involved with the entity to make informed business decisions.