“Accounting is the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are, in part at least, of a financial character and interpreting the result thereof” – American Institute of Certified Public Accountants (AICPA)
“Accounting refers to the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information” – American Accounting Association (AAA)
“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 decision.” – Accounting Standards Council (ASC), succeeded by Financial Reporting Standards Council (FRSC)
It is an art because accountants apply practical experience, knowledge and skills guided by accounting principles and rules in the efficient preparation of Financial Statements.
It is a service since accounting profession does not involve selling activities. Instead, it provides professional service.
It is a process as it goes through an accounting cycle to summarize business transactions into organized and understandable Financial Statements.