e Notes MBA

Introduction to Accounting Accounting is a system meant for measuring business activities, processing information into reports, and making the findings available to decision-makers. The documents, which communicate these findings of the performance of an organization in monetary terms, are called financial statements. Accounting is aptly called the language of business. This designation is applied to accounting because it is the method of communicating business information. The basic function of any language is to serve as a means of communication. Accounting duly serves this function. The task of learning accounting is essentially the same as the task of learning a new language. But the acceleration of change in business organizations has contributed to increasing the complexities in this language. Like other languages, it is undergoing a continuous change in an attempt to discover better means of communication. To enable the accounting language to convey the same meaning to all s