Final answer:
Accounting involves the recording and analysis of the financial activities for firms. It includes management, reporting, and communication with stakeholders.
Step-by-step explanation:
Accounting involves the recording and analysis of the financial activities for firms. It is the process of keeping track of the financial transactions of a business and analyzing the financial data to provide meaningful insights and information.
For example, an accountant would record the sales, expenses, and other financial transactions of a company in their books. They would then analyze this information to create financial statements such as the income statement, balance sheet, and cash flow statement.
Through this process, accounting provides a clear picture of a company's financial health and performance, which is essential for decision-making, management and supervision, as well as reporting and communication with various stakeholders.