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accounting

Definition

The systematic recording, reporting, and analysis of financial transactions of a business. The person in charge of accounting is known as an accountant, and this individual is typically required to follow a set of rules and regulations, such as the Generally Accepted Accounting Principles. Accounting allows a company to analyze the financial performance of the business, and look at statistics such as net profit.

Featured Tip

9 Signs of Potential Creative Accounting PracticesHere are nine things investors should watch for as possible warnings of accounting gimmickry:
1. Overly Aggressive Performance Targets: The company ups the ante by continually setting revenue an ... Read more