Accounting may be defined as the collection, compilation and systematic recording of business transactions in terms of money, the preparation of financial reports, the analysis and interpretation of these reports and the use of these reports for the information and guidance of management. The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business. This information is then used to reach decisions about how to manage the business, or invest in it, or lend money to it.
Accounting majors learn how to create, maintain and audit a detailed and accurate system that displays the finances of a business or organization. They study the theory behind accounting and learn how to analyze the financial position of a firm or organization.
