Preparing a Profit and Loss Statement is an example of accounting.
- the principles or practice of systematically recording, presenting, and interpreting financial accounts
- a statement of debits and credits
- a settling or balancing of accounts
- Present participle of account.
- First attested in the late 14th century.
- account + -ing
accounting - Investment & Finance Definition
A system that measures, organizes, and communicates financial information about a specific business, government, or other entity.
accounting - Legal Definition
- The act or a system of establishing how the assets of a business, estate, trust, or other similar entity were managed and disposed of.
- In equity, a legal action to require one, usually a fiduciary or a constructive trustee, to account for and pay over funds held by them but owed to another. See also account.
- In equity, a legal action for the recovery of funds owed for services performed, property sold, money loaned, or for damage for the incomplete performance of minor contracts. See also account.
- A legal action to complete or settle all of a partnership’s affairs. Usually done in connection with the dissolution of the partnership or with allegations of a partner’s misconduct. See also winding up.