ACCOUNTING IS AN ART OR SCIENCE

Accounting refers to the mechanism of maintaining and keeping the records of the transactions and events and also its analysis and interpretation. It also includes the preparation of final accounts i.e. Trading and Profit and Loss Account and Balance Sheet at the end of the financial year. It is associated with communicating the interpreted results of the financial information to its users. Accounting is an art or science- is discussed as follows:

ACCOUNTING IS AN ART

Art refers to the methods of doing work in a systematic manner to attain specified objectives. Art requires some kind of skills and knowledge and practice.

ACCORDING TO AICPA (American Institute of Certified Public Accountants)

“Accounting is art of recording, classifying, summarizing in a significant manner and in terms of money, transactions and events which are, in part at least, of financial character and interpreting the results thereof.”

Accounting is an art as the books of accounts are maintained on a system which is embodied with some assumptions or personal judgments. It is practical subject involving skills, knowledge and regular practice. The regular practice of maintaining records make the accountants skillful and experienced.

ACCOUNTING IS A SCIENCE BUT NOT A PURE SCIENCE          

Science is a systematic body of knowledge based on repeated experiments and observations and establishes the cause and effect relationship.

ACCORDING TO SMITH AND ASHBURNE

“Accounting is the science of recording and classifying business transactions and events, primarily of financial character, and the art of making significant summaries, analysis and interpretation of those transactions and events and communicating the results to the persons who must make decisions to form judgments.”

Accounting is a science because it involves certain principles which are universally applicable. The items which are recorded in the books of accounts are based on certain definite principles. It consists of concepts, conventions, rules and principles etc.  However, there is no cause and effect relationship established. This makes the accounting a science but not a pure science.

 To conclude, it can be said rightly that accounting is an art and science but not a pure science.

Also Study	Also Study	Also Study	Also Study
Accounting	Non profit organisation	Depreciation	Liquidity ratios
Nature of Accounting	Receipts and Payments Account	Depreciation Accounting	Acid Test Ratio
Benefits of Accounting	Scope of accounting	Hire Purchase Accounting	Cash Ratio
Difference between cost accounting and financial accounting	Financial accounting, cost accounting and management accounting	Difference between hire purchase and instalment system	Financial ratio analysis
Difference between transaction and event	Transactions	Users of Accounting	Ratio analysis
Limitation of Accounting	Capital Expenditure	Instalment System	Difference between consignment and sale
Book Keeping	Revenue Expenditure	Reserves Accounting	Abnormal loss vs normal loss in consignment
Accountancy	Difference between capital and revenue expenditure	Provisions	Treatment of loss on consignment
Accounting as science or an art	Accounting Equation	Single entry system	Accounting treatment of consignment
Book Keeping vs accounting	Deferred Revenue Expenditure	Difference between statement of affairs and balance sheet	Joint venture vs consignment
Book keeping vs accountancy	Capital receipt	IFRS	Departmental Accounting
Accounting vs accountancy	Revenue receipt	Balance Sheet	Methods of departmental accounting
Basis of Accounting	Difference between capital and revenue receipt	Profit and loss Account	Allocation of expenses in departmental accounting
Branches of accounting	Difference between accounting concepts and conventions	Trading Account	Inter-departmental transfers
Cash and mercantile system of accounting	Accounting Standards	Voyage Account	Different types of branches
Accounting Principles	Objectives of Accounting	Accounting for Incomplete Voyage	Departmental vs Branch accounting
Golden ru les of accounting	Process of Accounting	Joint venture	Methods of branch accounting
Double entry system of book keeping	Scope of Accounting	Joint Venture Vs Partnership	Incorporation of branch trial balance
Double entry vs Single entry system	Accounting Concepts vs Accounting conventions	Methods of recording transactions in Joint Venture	Garner VS Murray Rule
History of Accounting	Difference between provisions and reserves	Consignment