Chapter 1 - Introduction to Accounting
CBSE Class 11 - Accountancy - Q & A
Q1: Define Accounting.
Answer: Accounting can be defined as a process of identifying, recording, classifying, summarizing and communicating economic data.
The introduction of accounting helps the decision-makers of a company to make effective choices, by providing information on the financial status of the business. Today, accounting is used by everyone and a good understanding of it is beneficial to all.
Accountancy acts as a language of finance.
Accounting is a service activity. Its function is to provide quantitative information, primarily financial in nature, about economic entities that is intended to be useful in making economic decisions.
Q2: State the objectives of accounting.