Many of the people think that accounting is just understood and practiced by professional accountants and it is highly a technical field. But in reality, every person practices accounting in different forms on daily basis. Accounting is the art of measuring, communicating, and interpreting the results of different economic activities. It may be managing an international corporation, balancing your checkbooks, preparing your income tax return or paying different bills for example: electricity bills, telephone bills etc. In this way you are using basic accounting concepts and information.
It is also known as a language of business because many of the accounting terms are widely used in business world such as: earnings per share, cash flows, assets, liabilities and net income etc are major examples. The person stakeholders (decision makers, investors, managers) who participate and communicate in business world or community must have clear understanding of accounting concepts and terms.
This is the era of accountability so, this information is not just limited to the business world. Every person must account for their income and tax returns. To qualify for any college scholarship, loan, to obtain credit card individual must provide personal accounting information. For controlling resources and measuring actions every one has to utilize accounting information such as: states, cities, districts, schools, and federal governments etc. Accounting information is also important for smooth business operations. Every student should have understanding of accounting but it is not only limited to accounting students rather it important for the people engaged in business or economic activities.