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The Basic Concepts of Accounting & Its Meaning- CA Foundation Introduction Accounting is the process of recording all of a person's or company's financial transactions. Then there are the procedures and guidelines that govern how a transaction should be recorded. Debit and credit, revenue and expenditure, asset and liability are all examples of this distinction. Then there are regulations about whether it is a benefit or a cost, and so forth. The economic unit is treated as a legal entity in its own right. It's a method of keeping track of a company's financial transactions. Analyzing transactions for regulators and agencies is part of the accounting process. Accounting can make use of financial statements. These statements list all of the monetary transactions that occurred within a given accounting period.   How Accounting Works? Accounting is one of the most important aspects of almost any company. It is increasingly being handled by a bookkeeper or accountant at