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Answer: Accounting is defined to be the measurement, processing, and communication of financial information to economic entities such as businesses and corporations.  This means reporting and analyzing financial transactions of a business to oversight agencies, regulators, and the IRS.

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Accounting is the process of recording financial transactions pertaining to a business. ... The financial statements used in accounting are a concise summary of financial transactions over an accounting period, summarizing a company's operations, financial position, and cash flows.