Question
Discuss : Characteristics of accounting :

Answer

Characteristics of accounting are as follows:
$(i)$ Financial characteristic : Transactions or events which are recorded in accounting musthave some in monetary value.
$(ii)$ Money as a medium of exchange : Transactions or events recorded in accounting comeinto existence through the usage of money.
$(iii)$ Classification and analysis of transactions : Economic transactions which takes place in business, based on activities like income,expense, assets or liabilities by applying debit-credit rules, they are recorded in the booksof accounts known as classification and analysis of transactions.
$(iv)$ Interpretation of transactions : Transactions recorded in accounting can be interpreted andtheir results can be understood
$(v)$ Quantitative Information : Information recorded in accounts is in the monetary form. Sothis information is known as quantitative information.
$(vi)$ Economic decisions : Different stake holders take their decisions based on accountsprepared, thus assist them to make economic decisions.
$(vii)$ Historical information : In accounting all the past transaction and events are recordedwhich simply discloses history. Accounts prepared on the basis of history representhistorical information and results having relation with historical information

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