Introduction to Accounting
The word “Accounting” means “Language of Business”. Business managers, cashiers, and salesmen use the term accounting to explain business events. You will find that many of the terms used in accounting have obviously different meanings in non-accounting usage. If you need knowledge of accounting you will have to know about business operations and the basis on which business decisions are made.
As we earlier said Accounting is called the Language of Business. Question is that why do we say that phrase?………. Because we know that the purpose of any language is basically to communicate, to share the thoughts of one person with another through spoken words. Urdu, English, French, Punjabi, Sindhi, Chinese, etc. all are languages and serve their purpose to communicate very well. Just like these languages, Accounting is called the language of business people. The terms used in this language only be understandable for those, who know this language, “Accounting”, just like other languages. For example, if a person has nothing knowledge of French or Chinese, he will be unaware if two persons in front of him talking with each other in French or Chinese.
So, the proper knowledge of accounting for business persons is necessary as in other languages, if they want to enhance their business capabilities or know about recent financial information from all over the world.
EVOLUTION OF ACCOUNTING
Just like Science, Arts, or another social or economic field of human life. Accounting also has a history. If we study the civilization of mankind, then we can say that in every period, there was a recording of business and financial information. with the development of society, the techniques of recording also have changed and nowadays, it become more complex as compared to the old days.