Definition of accounting And his goals

 Accounting is a set of principles, foundations, assumptions, and followed assets, recording, summarizing, classifying and analyzing economic or financial operations in any establishment, producing information and communicating it to the concerned parties, whether it is an internal party, which is the management or owners, or an external party related to the facility to help in making appropriate decisions.

And keep this information in records to access this information at any time. Accounting is also used to measure and analyze from profit or loss through the income statement and to determine the financial position of the facility through the budget and on the change in property rights and the change in cash represented in knowing the cash coming in and out of During the statement of cash flows

Accounting is a science and an art. Therefore, accounting information should achieve its desired purpose, which is to assist information users in making appropriate decisions. It is one of the social sciences where it is concerned with studying financial behavior and its focus is financial operations, i.e. economic events.

Which occurs in the establishment or economic unit, which is supposed to have a legal personality separate from the personality of its owner, i.e. it is considered a person, but it is a legal person and is concerned with one accounting period with the imposition of continuity and this period is estimated by a year, meaning each year is an accounting period that has its account.

Registration Course (Enrollment)

The first thing, and it is very important, are the documents. It is not possible to register without a document because it is what proves the occurrence of economic operations, then after that the registration of the accounting record, which consists of two parties, debtor and credit.

Then after that the transfer to the ledger, which is an account statement for each account that was opened in the facility, where it shows what this account is and what it owes, i.e. if he is a debtor then he is owed and if he is a creditor then he is his.

Then after that to tab and clearance

By placing the documents and their entries in the books until the documentary cycle is complete, and one of the most important goals of accounting is also to preserve the company's funds from loss and embezzlement and direct revenues and expenditures to determine the outcome of the establishment's work and the purposes of precautions that have a major role in facing future losses: any application of the principle of prudence And caution