CHAPTER ONE

1.0     INTRODCUTION

Accounting can be defined as an act recording classifying, summarizing and reporting of business transaction for preparation periodic statement of  performance  and caused to provide information to management for decision making.

It’s an act of controlling a business by keeping records, preparing form those records certain statistics called ‘ accounting ration” and using those rations to detect financial difficulties before they become serious and uncontrolled so that certain measures may be taken.

One of the objectives of a business is to make a profit and  we defined a profit as a function of how the  resources of the  business in terms of manpower, raw material, capital are employed. One of the chief aims of accounting is to reveal whether or not a business is been conducted profitably.