MANAGEMENT

Detailed explanation-1: -Financial Accounting is often called the language of business; it is the language that managers use to communicate the firm’s financial and economic information to external parties such as shareholders and creditors. Nobody working in business can afford financial illiteracy.

Detailed explanation-2: -So, why is accounting called the language of business? Just like a universal language, business accounting helps people understand what is going on inside the business. This can help both business owners and financial advisors make productive decisions in business.

Detailed explanation-3: -Accounting provides financial information about a business or non-profit organization. Owners, Investors, & Managers & other interested parties need financial information to make decisions. Because accounting is used to communicate financial information, it is often called the language of business.

Detailed explanation-4: -In business, there are three main “languages” – accounting, finance, and economics. While there are many other disciplines in business, such as marketing, human resources, operations, etc., it’s the core principles and terminology behind accounting, finance, and economics that drive decisions across businesses.

Detailed explanation-5: -Many accounting professionals have referred to accounting as the language of business because it is the means of communicating information about a business.