Accounting operates within a broad socio-economic environment, and so, the knowledge required of the accountant cannot be sharply compartmentalized.It is therefore, difficult to discuss one area without relating to other areas of knowledge. We place a great emphasis on the conceptual knowledge. The accountant should not only know but he should understand. From the above it is clear that to define accounting as such, is rather difficult. Many accountants have defined Accounting in very many languages. However, we can consider the following definitions: 1.H.Chakravorty: “Accountancy is the science of recording, classifying and summarizing transactions so that relation with outsiders is exactly determined and result of operation during a particular period can be calculated, and the financial position as the end of the period may be shown. 2.A.I.C.P.A.: "Accountancy may be defined as the art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events, which are in part, at least of financial character, and interpreting the results thereof". 3.Taylor and Shearing: "Accounting may be defined as the art and science of recording business transactions in a methodological manner so as to show: (a) the true state of affairs of a business of a particular period of time and, (b) the surplus or deficiency which has accrued during a specific period." It may be very aptly pronounced now-a-days that due to the spectacular development in the research and analytical aspects, Accounting, in the present day, has not confirmed itself to only record-keeping but has spread its branches to the farthest corners of commercial activities. As such, Accounting to-day, may be divided as follows: 1.Book-Keeping: Primary recording of the day-to-day transactions of any business unit and their subsequent posting into the Ledger Accounts are the functions of this part of accounting. As this part of the job of the Accountant is only keeping the proper records, it is therefore termed as Book-Keeping. 2.Accounting: To prepare the Trial Balance and thereby to check the arithmetical accuracy of the books and records, to prepare the Revenue statements of Profit or Loss Accounts, to prepare the statement of Affairs or Balance Sheets, or , in other words, to prepare the Final Accounts and also to make plans and programmes for smooth running of this part of Accounting procedures and to act accordingly are, in short, the functions of the Accountant. This of his work is generally termed as accounting. 3.Cost Accounting: In any manufacturing concern, it is necessary to keep the records of daily stocks in hand, their issues and receipts, payment of wages, calculated regarding overhead charges, fixing the sale-price of the products, to prepare the budget and thereby to help in cost control etc. These functions are the functions of the Cost Accountant. 4. Management Accounting: The present-day Management is very much dependent on the Accountant in all the levels of managerial activities. By furnishing regular reports regarding various necessary information required daily by the management, the Accountant very ably helps in their work. Cost Control, Quality Control, Budgetary Control, Planning etc.are therefore, the functions of the Management Accountant. 5. Decision Accounting: This means that part of the functions of the Accountant by which he prepares and presents necessary information to the Management for making decisions. This function is one which has developed a great during the recent years. As and when there arises a particular problem in any business unit, the accounting personnel are thereupon called to present the necessary information in all possible details and in a most appropriate manner. Decision Accounting is thus, a part of the Managerial Accounting. 6.Household Accounting: With the development of the Socialistic Pattern of economy and the emergence of the Welfare States, the present-days Governments in all the countries in the World are becoming more and more interested in collecting taxes not only form the corporate bodies of form the employed persons but also from the self-employed men and professional personalities. These types of persons are now required to maintain their professional accounts Household Income and Expenditure Accounts separately. 7. Government Accounting: Government Accounting is quite different from Commercial Accounting. This is because in Welfare States is present day World, any Government has to collect taxes, compute National Income, fix the Gross National Product Target, ascertain the Balance of Payments position etc.governments, therefore have their own system of Accounting which is called Government Accounting. 8. Auditing: Whether the Books of Accounting have been maintained correctly or not has to be proved. For this purpose, the Accounts are to be checked by some qualified persons from the Book of Prime entry up to the Final Accounts every year. This is also necessary for the benefit of the share-holders as well as for the Government which will collect taxes on the basis of the Published Accounts.