Account Means

Definition

Financial records of an organization that register all financial transactions, and must be kept at its principal office or place of business. The purpose of these records is to enable anyone to appraise the organization's current financial position with reasonable accuracy. Firms present their annual accounts in two main parts, the balance sheet, and the income statement profit and loss account. The annual accounts of a registered or incorporated firm are required by law to disclose a certain amount of information. And have to be certified by an external auditor that they present a true and fair view of the firm's financial affairs.

Meaning of Accounting

The art of recording , classifying and summarizing , in a significant manner and in terms of money , transaction and events which are, in part at least, of financial character, and interpreting the result there of.

            The three important aspects of accounts have been highlighted by the above definition.


             1. Account as an Art & science.


             2. Accounting is done for Business transaction.


             3. Accounting is a system.

Definition of Capital Account

Capital account can be regarded as one of the primary components of the balance of payments of a nation.

Definition: Capital account can be regarded as one of the primary components of the balance of payments of a nation. It gives a summary of the capital expenditure and income for a country.

Description: The capital expenditure and income is tracked by way of funds in the form of investments and loans flowing in and out of an economy. This account comprises foreign direct investments, portfolio investments, etc. It gives a summary of the net flow of both private and public investment into an economy.

         A capital account deficit shows that more money is flowing out of the economy along with increase in its ownership of foreign assets and vice-versa in case of a surplus. The balance of payments contains the current account which provides a summary of the trade of goods and services in addition to the capital account which records all capital transactions.

        Balance of Payments, Capital Assets, Current Account, Balance of Trade, Foreign Direct Investment.

Definition of Accounting

            The systematic and comprehensive recording of financial transactions pertaining to a business. Accounting also refers to the process of summarizing, analyzing and reporting these transactions. The financial statements that summarize a large company's operations, financial position and cash flows over a particular period are a concise summary of hundreds of thousands of financial transactions it may have entered into over this period. Accounting is one of the key functions for almost any business; it may be handled by a bookkeeper and accountant at small firms or by sizable finance departments with dozens of employees at larger companies.

Accounting Explains

            The reports generated by various streams of accounting, such as cost accounting and management accounting, are invaluable in helping management make informed decisions. While basic accounting functions can be handled by a bookkeeper, advanced accounting is handled by qualified accountants who possess designations such as CPA Certified Public Accountant in the United States, or CA Chartered Accountant /CGA Certified General Accountant /CMA Certified Management Accountant in Canada. All accounting designations are the culmination of years of study and rigorous examinations, combined with a minimum number of years of practical accounting experience.