Often referred to as the language of business; accounting is more a means of keeping score in a common format.
Accounting involves recording business transactions in financial terms and reporting that information to business owners and other interested parties.
Business transactions such as:
are described in accounting for the impact that they have and evaluated to a common base known as money.
By common agreement in the UK we accept that the money base is £ sterling (it could be any other unit of measure if we all agreed and recognised it).
The business score in accounting is usually presented in three documents, each in a particular format and showing financial information of different significance: