Accounting is a practice that allows someone (or something, in the case of an organisation), the accounting entity, to keep track of their economic and financial details. It involves accounting for their economic resources, as well as the sources from which they are obtained.In early accounting practice, businesses would keep separate lists of their resources and sources. It was soon discovered that both can be linked. Thus came double-entry accounting, where every transaction that is recorded would recognise both and implicitly relate the two together.
All accounting entities strive to accumulate resources, while being careful of how they finance them. Those resources help to satisfy the accounting entity’s economic wants by providing economic benefits.
