Understanding of Accounting According to Experts
Understanding of Accounting According to Experts Complete With Its History: Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and in events related to finance. Accounting is a process of recording, classifying, summarizing, processing and presenting data, transactions and in financial-related events that can be used by people who use them easily understood in making a decision and other objectives.
Understanding of Accounting in General
Accounting is often referred to as a business language, or more accurately, the language of decision making. The more someone masters this language, the better the person will handle various aspects of finance in his life. The definition of accounting can be formulated through 2 (two) points of view, namely the definition from the point of view of the users of accounting services and the definition from the perspective of the process of its activities.
From the point of view of users of accounting services, accounting can be defined as a scientific discipline and / or service activity that provides information needed to carry out activities efficiently and evaluate the activities of an entity or financial transactions. The usefulness of accounting information is to:
Make effective planning, as well as supervise, and make appropriate economic decisions by management
The responsibility of the entity to investors, creditors, the government, and so on.
If viewed from the perspective of the process of its activities, accounting can be defined as the process of recording, classifying, summarizing, reporting and analyzing the financial data of an entity. From this it can be seen, that accounting is a complex activity, involving a variety of activities, so basically accounting must:
Identify which data is relevant or relevant to the decision to be taken,
Process or analyze relevant data,
Turn data into information that can be used for decision making.
From the above definition, we can simply explain that accounting can produce information that is used by managers to carry out company operations. Accounting also provides information to interested parties to find out the financial performance and condition of the company.
Understanding of Accounting According to Experts
Here Is An Understanding Of Accounting According To Experts.
1. ABP Statement No. 4 in Smith Skousen (1995: 3)
Defining Accounting is a service activity which is to provide quantitative information, especially those that have the nature of making economic decisions in making decisions that are logical choices among various alternative actions.
2. American Accountants Association
States that accounting is a piece, estimation, and reporting of financial data, which allows an assessment and choice to make clear and decisive for individuals who utilize data.
3. Frederich D.S. Choi, Gerhard G. Mueller
Accounting is a process of identifying, measuring and communicating economic information to enable users to make judgments and decisions.
4. Soemarsono S.R (2004)
Accounting is the process of identifying, measuring and reporting economic information to enable clear and explicit assessments and decisions for those who use that information.
5. S. Munawir (2005)
Accounting is an art rather than recording, classifying and summarizing events and events and at least financial nature in the most expeditious manner and as directions or expressed in money, as well as interpreting the things that arise from it.
6. Henry Simamora (2005)
Accounting is the process of measuring the economic activity of an entity in units of money and communicating the results to interested parties.
7. Sofyan Harahap (2005)
Accounting is as a process of identifying, measuring, and conveying economic information as information material in terms of considering various alternatives in drawing conclusions by the users.1
8. Zaki Baridwan (2000)
Accounting is a service activity, its function is to provide quantitative data, mainly those of a financial nature, from economic ventures that can be used in making economic decisions in having alternatives in a situation.
9. Suparwoto L
Accounting is as a technique or system for measuring and managing financial transactions and presenting the results of management in the form of information to internal and external parties of the company. External parties include investors, creditors, governments, trade unions and so forth.
10. Paul Grady
Accounting is as a body of knowledge and organizational functions systematically, authentic and original in recording, classifying, processing, making summaries, analyzing, interpreting all transactions and events and financial characteristics that occur in the operations of accounting entities with the aim of providing meaningful information needed by management as a report and accountability for the trust it receives.
11. Mulyadi
Accounting functions as a tool to record and present financial reports to facilitate management in managing the company.
12. Littleton (Muhammad, 2002: 10)
Accounting is a comparative calculation of the costs incurred as a business with the achievement of results that are the achievements of the business.