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Introduction to Accounting

 Introduction to Accounting

The word "Accounting" means "Language of Business". The business managers, cashiers and salesmen use the term accounting to explain the business events. You will find that many of the terms used in accounting have obvious different meanings in non-accounting usage. If you need the knowledge of accounting you will have to know about the business operations and the basis on which business decisions are made.

As we earlier said that Accounting is called the Language of Business. Question is that why we say that phrase?.......... Because we know that the purpose of any language is basically to communicate, to share the thoughts of one person to another by spoken words. Urdu, English, French, Punjabi, Sindhi, Chinese, etc. all are languages and serve their purpose to communicate very well. Just like these languages, Accounting is called the language of business people. The terms used in this language only be understandable for those, who know this language,"Accounting", just like other languages. For example, if a person have nothing knowledge about French or Chinese, he will be unaware if two persons in front of him talking with each other in French or Chinese.

So, the proper knowledge of accounting for business persons is necessary as other languages, if they want to enhance their business capabilities or know about the recent financial information from all over the world. 

EVOLUTION OF ACCOUNTING

Just like Science, Arts or other social or economic field of human life. Accounting also has a history. If we study the civilisation of mankind, then we can say that in every period, there was a recording of business and financial information. with the development of society, the techniques of recording also has changed and now-a-days, it become more complex as compared to old days.

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