Accounting involves a lot of complexities, but understanding some basic principles can be very helpful. Wise accounting rules must display similar shrewdness in preventing undesirable accounting. The way to get maximum safety from accounting rules is to force a pessimistic outlook. In the long term, huge public benefits are to be gained, with almost no public dangers, from pessimistic accounting, while optimistic accounting is a public menace. To so state the problem suggests a solution: placing the control of accounting much further away than it now is from the influence of accounting firms, corporations and politicians.
The system of generally accepted accounting principles is defective because the desires of accounting firms and the wishes of their clients make it so. Moreover, because significant parts of the system are rotten to the core, the trouble will not be limited to firms that engaged in derivatives trading or hired the accounting firm Arthur Andersen. Accounting is also changing with the changes, modifications and complexities of business.
The aim of site is to solve all practical accounting, tax, finance, tally software, computer accounting and business problems. The site is read by computers hobbyists, students, accounting professionals, chartered accountants, commerce lecturers, journalists, entrepreneurs, early adapters and decision makers. Accounting is the science of recording and presenting the financial data of an economic entity by observing, detecting, investigating, and identifying the economic events via established collecting, testing, analyzing and presenting methods. Accounting; like science follows a systematic and organized path to understand the economic status of the entity.
Like Science; Accounting requires to gain knowledge about the economic status of an entity by systematic study. An accountant finalizes the economic results by identifying, analyzing, classifying using the method of double-entry bookkeeping accounting system. So, Accounting is a science that includes comprises of rules, principles , concepts, conventions and standards like science. Accounting is an art because it presents the financial findings by following and implementing a universally accepted method ( GAAP ). Art is the study of implying scientific method to practical use.
And Accounting is an art as the established rules and principles of accountin g is applied in bookkeeping process of and economic entity. Views and thoughts about whether accounting is an art or science differ from accountant to accountant. Processes and methods used in accounting can be underlined as scientific, and the decisions and estimation making can be classified as an art. The rules and principles is the science part of the accounting” and choosing the way to use them is considered as the art.