The Ohio State University

Accounting is the analyzing and recording of financial transactions, the summarizing of financial data in financial statements and reports, the interpretation of financial data for decision making, the development of budgets for future planning, the determination of taxes and tax planning, the auditing of records and development of systems to verify financial activity, and the internal control of the activity being examined. Accounting provides relevant information to decision makers, managers, investors, creditors, labor unions, government regulators and others interested in the financial well-being and future of an entity of economic activity.