Language is a way of conveying one’s attitude towards another. All the world creatures use different shapes and words to express themselves to each other, meaning something that human beings do not understand.
If both the one serving the news and the one receiving the information understand the gestures, signals, and words, it is called language.
Each language has a different alphabet. In addition to the alphabet, languages use various symbols, such as numbers, lines, pictures, etc. Those familiar with these alphabets, logos, diagrams, etc., will understand that language; others can’t understand that language.
There are many languages in the world. Everyone expresses their thoughts in their language. For example, people in America speak English, people in Spain speak Spanish, People in China speak Mandarin, etc.
In every business, the organization also discloses all the information related to their transactions through accounting. For that reason, accounting is called the language of modern business in modern times.
Accounting is used as a medium to convey one’s thoughts about financial events. Using language, one can express attitudes towards each other about economic activities.
The underlying significance can be understood only by those who understand the meaning of words, signs, symbols, etc., of the alphabet in any language.
In accounting, characters and symbols such as debit, credit, journal, a particular table, list, statement, etc., are used. For those who do not know the underlying meaning of these signs, words, and symbols, it is impossible to understand the importance of an account.
Accounting discloses all the organization’s necessary information to the account holders from time to time. Accounting provides all information about past events, current activities, and future possibilities of a company.
Accounting shares various information with owners, workers, managers, investors, buyers, vendors, etc., by recording and analyzing current and past financial events.
Parties concerned can evaluate their success-failure, financial solvency failure, etc., from these accounts, statements, and reports.
Just as language is governed by grammar, accounting is governed by various accounting-related rules, principles, practices, and limitations.
Language is a continuous process. Accounting is also a continuous process. We can speak about the accounting cycle, for instance. The accounting cycle work goes on from identifying the transaction to determining the financial results, and this process evolves continuously.
In the world, no language is universal. Likewise, the accounting language is not comprehensible to everyone. With societal changes, the languages of human life are changing. Likewise, the development and complexity of the language of business accounting are slowly changing.
Therefore, we can say that accounting is called the language of the modern business.
You can also read:
- What is the definition of accounting?
- The importance of accounting.
- What is the difference between financial accounting and management accounting?
