Explain the relevant aspects of Accounting. Explain the Characteristics of Accounting.

Following are the relevant aspects/characteristics of Accounting:

• Economic Events – Economic events mean those transactions which are measurable in terms of money from a business point of view. These events may be external or internal.
• Identification, Measurement, Recording and Communication – Accounting identifies those economic events which are related to business and measures them in terms of money. They are recorded in a chronological order & then with the systematic presentation communicated to the users.
• Organizations – It refers to a business enterprise which may be in the form of sole proprietary, partnership firm, company etc.
• Interested Users of Information – Users may be of two types: Internal users (e.g. management) and External users (e.g. shareholders, creditors, banks, financial institutions, customers etc.).