Accounting Defined
Accounting is called as a "language of business", it is also divided into four process such as (RCSI) Recording, Classifying, Summarizing and Interpreting. When we say "Recording" it is the process of entries which is written in the books, in every move in the business there is what we call transactions, and those transaction are recorded in a journal, that process is called recording.
The next process is "Classifying", before you record an accounts, you need to classify it depending on what is ask, for example, a transaction can be classify either it is an Asset or Liability. In this process you will know which belong on the first group of accounts and in the other group.
Once everything is recorded and classified, "Summarizing" would take place, you will summarize everything according to what is ask. Lastly, is "Interpreting", due to technicality of Accounting, every numbers should be interpret to other non-accountant. Summarizing can be done by creating an Income Statement of Balance Sheet or other summary report which is understandable by other non-business person.