Accounting means to calculate or account.
Almost all business activities around the world use this word to make decisions, so often referred to as the language of business.
The accounting definition is a process of recording, classifying, summarizing, processing and presenting data, transactions and events relating to finance, so it can be used by people who use it to easily understandable for making a decision as well as other purposes.
The primary function of accounting is as an organization’s financial information, so we can see the financial position of an organization along with the changes that occur therein. This was made qualitatively with the unit of measure of money.
Information on financing is needed especially by the manager or management to help make decisions of an organization.
Basically, the accounting process is to make the output of the income statement, statement of changes in capital and balance sheet reports on a company or other organization.
Therefore, on each report must include company name, report name, and date of preparation or the report period to facilitate other people understand it. Reports can be periodic, could also be a certain time only.
Accounting has a process that consists of the stages to be able to generate the desired reports and conducted by an accountant.
1. Clarifying Process Transactions
The initial phase is to conduct a division of an organization or corporate transaction in certain types predefined.
Examples of such divides transactions into the sales, purchasing, cash disbursements, cash receipts, etc. into each piece. While for a small number of transactions and rarely occurs can be equally incorporated into the same category type which various transactions.
2. Process Recording And Summarizes
Subsequent accounting process is done recording. Enter your existing transactions into the appropriate journals in the order of the transactions or events. sources that can be used as evidence of a transaction which is like a kind of business paper receipts, bills, notes, receipts, certificates, and others.
Journals commonly available in the accounting journals such as the sales journal, purchases journal, cash receipts journal, cash disbursements journals and general journals. The next process is to enter into a ledger journals regularly. Results of transfer into the general ledger will be seen from the summary trial balance.
3. Interpreting And Reporting Processes
Final accounting process is to conduct activities or making conclusions of previous financial statements of work. All matters relating to corporate finance is poured on those statements.
From information on the financial statements of both, in the form of income statement, statement of capital and balance sheet, then someone can find out what happens to a company, whether already in accordance with company objectives.
Such information can be a reference or guidelines for the management to take policy decisions on the organization to achieve desired conditions.

Accounting is the measurement, translation, or provision of assurance about information that will help managers, investors, tax authorities and other decision makers to make resource allocation decisions within companies, organizations, and government agencies. Accounting is the art of measuring, communicating and interpreting financial activity. Broadly, accounting is also known as the “language of business”. Accounting aims to prepare an accurate financial reports that can be exploited by managers, policy makers, and other interested parties, such as shareholders, creditors, or owners. Daily recording involved in this process is known as bookkeeping. Financial Accounting is a branch of accounting in which financial information on a business is recorded, classified, summarized, interpreted, and communicated. Auditing, a related discipline but to remain separate from the accounting, is a process whereby an independent examiner examined the financial statements of an organization to provide an opinion or opinions – a reasonable but not fully guaranteed – about the fairness and conformance with generally acceptable accounting principles.
Accounting called the language of business because it is a tool for providing financial information to parties who need it. To convey such information, it is used in accounting reports or known as the financial statements. The financial statements of a company usually consists of four types of statements, ie balance sheet, income statement, statement of changes in capital, and cash flows.
Balance Sheet, is a systematic list of the assets, debts and capital on a certain date, which is usually made at the end of the year. Referred to as a systematic list, because the balance sheet prepared on a particular sequence. In the balance sheet can be known how many property companies, the company’s ability to pay liabilities, and the company’s ability to obtain additional loans from outside parties. But they can also obtain information about the amount owed to the creditor company and the number of owners of existing investments in these companies.
The income statement, a summary of revenues and expenses of a company for a certain period, thus obtained can be known a profit and loss experienced.
Report changes in capital, was a report that shows changes in capital for a certain period, maybe one month or one year. Through the statement of changes in capital can know the causes of changes in capital during the given period. Consolidated cash flow, with the existence of this report the user can evaluate the financial statements of changes in net assets, financial structure (including liquidity and solvency) and the company’s ability to generate cash in the future.

In economics, inflation is a process of rising prices in general and constantly associated with the market mechanism can be caused by various factors, among others, increased consumer demand, the launch or the lack of distribution of goods.
Another definition is the process of decline in currency values are continuous. This is the process of an event, not the high-low price level.
This means high price levels that are considered not necessarily indicate inflation.
This condition is considered to occur if the price increase took place continuously and interact with each other. The term is also used to interpret the increase in money supply which is sometimes seen as the cause of rising prices.
Based on the cause, then inflation is divided into two:
• Demand inflation, arising from the demand for various items are too strong. For example, because the increase in government spending financed by printing money, or an increase in foreign demand for goods exports, or increase in private investment spending because of the cheap credit.
• Cost inflation, arising due to higher production costs or reduction in aggregate supply. Could be due to higher production facilities imported from abroad, or because of the increase in fuel oil).
While based on the origin of inflation, it can be classified into:
• Domestic inflation, comes from within the country. For example, because the budget deficit financed by printing new money, crops fail and so on.
• Imported inflation comes from abroad, arise because of rising prices abroad or in countries we trade subscriptions. Transmission of inflation from abroad into the country through the rising prices could also export goods and the channel-channel is only slightly different from the transmission through the rising prices of imported goods.
There are many ways to measure the rate of inflation, two of the most frequently used is the CPI and GDP Deflator. He also could be divided into three categories, namely mild, moderate, severe, and hyperinflation.
Called light occurs when price increases were below the 10% a year; was between 10% -30% a year; weight between 30% -100% a year; and hyperinflation or out of control, which occurs when prices are above 100% a year.
Consumer Price Index (CPI) is an indicator commonly used to describe price movements. CPI changes from time to time shows the price movement of a package of goods and services consumed by society.
In the macroeconomic context, this condition is illustrated by real output or potential output that exceeds the total demand (aggregate demand) is greater than the capacity of the economy.
Meanwhile, the factor of inflation expectations are influenced by the behavior of society and economic actors are more likely to be adaptive or forward looking. This is reflected in the behavior of price formation at the level of producers and traders especially during the great days ahead of the religious (Islamic holidays, Christmas and new year) and the determination of regional minimum wage.