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The accounting is thousands of years old and the earliest accounting reports were found more than 7, years back in Mesopotamia. At that time the people relied on the primitive accounting process to record the growth of their herds and crops and. With the advancement of business accounting is also evolving and improving day by day.
Earlier accounting mainly acted as the memory of the businessperson and the in that time audience for the account was the record keeper or the proprietor alone. But with the growing development of joint stock companies produced larger number of audiences for accounts, because investors without firsthand acquaintance of their operations relied on accounts to provide the essential information. The development resulted in a split of accounting systems for internal accounting or management accounting and external also known as financial accounting.
Accounting that concerns with the reporting to people within the business entity is called as the management accounting. It is basically used to supply information to managers, employees, owner-managers or auditors etc.
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Accounting is defined as the as the art of recording, categorizing, and then summarizing in a noteworthy manner in terms of transactions, money and events which are of financial character, and understanding the results thereof.
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