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Accountancy

Accountancy (British English) or accounting (American
English) is the measurement, disclosure or provision of assurance about
information that helps managers and other decision makers make resource
allocation decisions. Financial accounting is one branch of accounting and
historically has involved processes by which financial information about a
business is recorded, classified, summarized, interpreted, and communicated.
Auditing, a related but separate discipline, is the process whereby an
independent auditor examines an organization's financial statements in order to
express an opinion (with reasonable but not absolute assurance) as to the
fairness and adherence to generally accepted accounting principles, in all
material respects.

Practitioners of accountancy are known as accountants.
Officially licensed accountants are recognized by titles such as Chartered
Accountant (UK) or Certified Public Accountant (US).

Accountancy attempts to create accurate financial
reports that are useful to managers, regulators, and other stakeholders such as
shareholders, creditors, or owners. The day-to-day record-keeping involved in
this process is known as book-keeping.

At the heart of modern financial accounting is the
double-entry book-keeping system. This system involves making at least two
entries for every transaction: a debit in one account, and a corresponding
credit in another account. The sum of all debits should always equal the sum of
all credits. This provides an easy way to check for errors. This system was
first used in medieval Europe, although some believe that the system dates back
to Ancient Greece.

According to critics of standard accounting practices,
it has changed little since. Accounting reform measures of some kind have been
taken in each generation to attempt to keep book-keeping relevant to capital
assets or production capacity. However, these have not changed the basic
principles, which are supposed to be independent of economics as such.