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.