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Accounting is an Information system necessitated by the great complexity of modern business. It is a system of generating and communicating financial information to tabulate the operations of an enterprise Accounting provides useful information about the activities of an entity to various individuals or groups for their use in making informed judgments and decisions. The primary role of accounting is to provide an effective measurement and reporting system on the basis of which various users make capital allocation decisions. This purpose is generally fulfilled by means of periodical statements and reports at the end of each accounting period. These statements present the financial picture of a company, both at a point in time and over a period of time, translating into financial items many, but not all, of the events and activities that affect it. And financial reporting is nothing if it is not an exercise in communication.