Accounting – a system of observation, generalization and reflection of financial and economic activity of an enterprise in order to obtain reliable data on its activity. Objects of accounting are means, their movement in the process of production and circulation, as well as the sources of their formation and use.
Accounting is strictly documented. This means that each transaction should be recorded in the accounting records only on the basis of documents, which gives it legal probative force; accounting uses specific techniques and processing of accounting data: for example, a system of accounts, double entry of transactions on accounts.
Accounting implies monitoring the availability and movement of assets, material, labour and financial resources in accordance with approved standards, standards and estimates. Besides, formation of full and reliable information on the business processes and results of the enterprise, the institution necessary for operational management and management, as well as for its use by investors, suppliers, buyers, creditors, tax, financial and banking authorities.
