Top 15 Features of Accounting [With PDF]

Do you want to know what the top features of accounting are? Don’t worry, we’ll cover the top 15 accounting features in this article.

What are the Top 15 Features of Accounting?

In a free-market economy, accounting is a dynamic practical science. Accounting has a long and diverse tradition that parallels the evolution of human civilization.

Accounting has progressed to its present level through years of experience and research. Analyzing accounting as a social science shows some of the features of accounting.

The top 15 features of accounting are as follows:

1.Accounting is a real process. The process is a subtle way of performing certain interrelated tasks. Accounting is a continuous process of reviewing financial matters.

Financial transactions are identified, recorded, summarized, and information is given through this system.

2. Accounting is inextricably associated with other branches of sociology such as mathematics, economics, political science, statistics, psychology, philosophy, and so on.

Aside from that, every social entity that conducts financial transactions is a step in the accounting process. Accounting is, thus, a social science.

3. Accounting is an art form in which accounting activities are carried out through a number of special principles and methods to put scientific formulas into practice for a specific purpose.

4. Accounting is the process of recording financial transactions in a logical way and in a scientific way, analyzing the cause and nature of each event and determining its outcome.

Moreover, monitoring, analysis, classification, etc. of financial transactions are being carried out in a very simple and efficient manner through the established formulas of accounting. In that sense accounting is a science.

5. Accounting is the language of business and it is used to prepare different statements and analyses from which the financial status of the company can be determined.

6. Accounting may be referred to as a form of orderly accounting because it allows a person or an organization’s financial transactions to be recorded in an orderly and reliable manner.

7. Accounting is a precise method because all transactions in accounting are recorded in a scientific way called the double-entry system.

8. Accounting is a self-contained process. Because in the case of accounting, one event or transaction does not depend on another event or transaction.

9. All of the business organization’s transactions are accurately and permanently recorded with accounting knowledge.

Aside from that, accounting examines all of the organization’s accounting methods and practices, so accounting is now regarded as an excellent means of accounting in the modern era.

10. In accounting, every event or transaction must be quantifiable in terms of money. Accounting does not cover events that cannot be measured in terms of money, such as human feelings, happiness-sorrow, laughter-cry, and so on.

11. Accounting analyzes every transaction in a dual entity and records it in the book of accounts.

12. Accounting is the measurement of a company’s total assets, liabilities, and capital at the end of a given time period. Accounting can thus be defined as a method of determining financial position.

13. Accounting is a management tool because it assists management by providing information in various areas of management.

14. In accounting, many transactions have to be calculated by estimating. For example, reserves on bad debts, depreciation are calculated by estimating these. These estimates are not always accurate, so accounting can be called approximate science.

15. Accounting not only reviews the customs and methods of accounting but also points out the practical knowledge of accounting.

Therefore, without acquiring knowledge of accounting theory, any person can acquire skills only in practice and hand-to-hand accounting. So accounting is a unique combination of practical knowledge and method.

Conclusion

In view of the above discussion, it can be said that accounting can be easily distinguished from other disciplines due to its multiple uses and varied features.

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