Accounting Explained

Accounting Explained

Even Latin you have to leave in order to find the etymological origin of the word accounting. Specifically, it emanates from the sum of several components of that language: the prefix “with”, which is equivalent to “together”; the verb “putare”, which is synonymous with “estimate”; the suffix “-ura”, which indicates a result; and the suffix “-ia”, which indicates “quality”.

Accounting is a term that refers to the office or office of the accountant. The accountant, on the other hand, is the professional who is dedicated to accounting (the science and technique dedicated to generating useful information for making economic decisions).

For example: “The owner of the company asked me to speak with the accountant to analyze why profit margins are getting smaller and smaller”, “For a large part of the year I dedicate myself to accounting: that is why, in my vacation, I don’t want to know anything about the numbers “, ” Gonzalo inherited his father’s interest in accounting.

It is therefore possible to understand the concept of accounting in various ways. In some contexts, accounting is equivalent to accounting, since it is the trade or discipline that is responsible for collecting, analyzing, generating and transmitting knowledge related to financial or economic information.

Taking this meaning into account, we would have to say that accounting is a discipline that, in turn, can be organized or classified into different branches, among which are the following: auditing, accounting, finance, administrative accounting…

The accounting office can also be the office, the office or the physical space where the experts keep the accounts of an entity. In this case, the accounting office is the meeting place, whether physical or symbolic, of the accountants. Financial information is produced from the accounting office that should be useful for decision-making.

We cannot ignore that when we define accounting based on what a physical space would be, we find the following types:
• Provincial accounting. As its name indicates, it is that office that within a province in question is in charge of keeping the accounts of both public revenues and each and every one of the contributions that the different peoples make to the general coffers of that territory.
• Mortgage accounting. It is the term that is used to refer to all that office that came to exercise as if it were a property registry.
• General accounting. Within the Council of Finance is this other office that is subject to a specific court and whose clear mission is to proceed to study and control everything that would be the flows owned by the monarch on duty as well as the treasury in general.

It can be said that all commercial endeavors contemplate, in one way or another, accounting. A company with a hundred employees is likely to have a highly developed accounting office, an office within its premises, and intense activity. A woman who decides to make homemade bread and sell it in her neighborhood, on the other hand, will not have a specialist dedicated to accounting, but will record her expenses and income and keep an informal accounting to find out how much she earns from her activity.

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