According to the American Instittute of certified Public Accountants has defined "the art of recording , classifying and summarizing in a significant manner and in terms of money transactions and events which in part , at least of a financial character , and interpreting the results thereof". Features of Accounting: 1.It is an art of recording financial transactions . non-financial transactions, such as showing the affcetion between two persons cannot be recorded in accounting. 2.It is an art of making summaries and analysis of the financial transactions. 3.Finally, it is an art of interpreting the results of the financial transactions and communicating the results to the persons who are interested in such results. Objectives Or Functions of accounting: Accounting as two distinct Functions :- 1.Historical Functions:-This function relates to recording , classifying, Summarising, analysing,and interpreting past transaction of an accounting unit.the objective of this function is reporting at regular intervals to owners, managers and other interested parties by means of financial statements. 2.Managerial function:-this funtion is helpful in planning future activities of the enterprise and in contolling day-to-day operations by comparing the actual results with some predetermined standards. this is done wth a view to promoting maximum operational efficiency.