In the beginning, the main objective of accounting was the ascertain the result of the business activities whether a profit has been earned or loss has been suffered during a year and to show the financial position of the business on a particulars dates.
But with the lapse of time⏲ more and more is being expected from accounting. At present accounting has to meet the requirements of taxation authorities, investors, government regulations, management, and owners. This has resulted in widening to the scope of accounting and may be defined as follows:
Accounting is the art of recording, classifying and summarising in a significant manner and in terms of money transactions and events which are in part at least of a financial character and interpreting the results threat.
According to H. SARKAR: "Accountancy may be defined as the art and science of rearranging the accounts and records as main founded by the bookkeeper and preparing statements based on them to interpret the combined effects in terms of money of all the business transactions that have taken place in a given period."
