In general, accounting(accounting) can be understood as a process of processing financial data(input) in order to produce financial information (output) that is useful forparties with an interest in the company or economic organization concerned.
The definition of accountingaccording to Jusup Haryono (2001: 4-5) includes 2 (two)
Understanding,Namely:
1. From the wearer's point ofview, accounting is a discipline that provides the information needed to carryout activities efficiently and evaluate the activities of an organization.
2. In terms of its activities,accounting is defined as the process of recording, classifying, summarizing,reporting, and analyzing an organization's financial data.
According to Lapoliwa andKuswandi (1993: 3), accounting is the art of recording, classifying andsummarizing in an appropriate manner and in units of money for transactions and events that at least part or all have a financial character and interpret the results of these records. Accounting is an information system based on whichinterested parties make decisions. Information as a result of accounting isneeded by many parties, both internally and externally. Interested parties and in need of financial information, among others
Are management, shareholders,employees, debtors and creditors, banks, government, and other parties in need?More technically, accounting is a collection of procedures for recording,classifying, making and reporting in the form of financial statements,transactions that have been carried out by the company and finally interpreting the report.
According to Santoso (1997:3-4), what is meant by accounting is a method or method used to keep records offinancial transactions so as to produce relevant information for making adecision. In his book Basic Principles of Banking Accounting, accounting is theoretically defined according to2 (two) groups of financial transaction processes, namely:
1. Managerial
Managerially, accounting isdefined as a financial information system with input in the form of transactionevidence and output in the form of financial reports.
2. Technically
Technically, accounting isdefined as a process or art of recording, classifying, summarizing, andreporting financial transactions with a certain method which is subsequentlyanalyzed or interpreted in order to make a decision.
Accounting Principles
Accounting principles arepropositions or doctrines to oversee a particular system or activity that hasbeen accepted as true. In the field of accounting, this principle is not anessential truth because the science of accounting is dynamic, constantlyevolving according to changes in values that occur in society (Lapoliwa and Kuswandi, 1993: 4). Accounting principles include: accounting unity, corporate sustainability, accounting period, and measurement in value for money, cost, determination of revenue and costs, consistency, objectivity, materiality, conservatism, disclosure and realization.