Acct 110 Chapter 1/2 discussion There is a common misconception that accounting is "math." In reality, accounting is the language of business. It's the reason why we can make an objective analysis on the financial standing of an entity whether it be a business, school, place of worship, hospital, or any other organization. How is this possible? Accounting takes into account (no pun intended) transactions that are recorded, organized, and reported to those interested, such as decision makers or in general stakeholders. The foundation of learning accounting is being able to classify accounts. We classify all the time. If I asked you what an apple was classified as, a fruit or vegetable? You would respond "fruit." If you have never seen an apple before or do not know much about it, then it would take some getting to know it's characteristics to be able to classify it. It is like that in accounting. In accounting we keep track of specific amounts of things under what's referred to as accounts. Accounts are then classified so we know how to organize them. For example, Cash is an account, that is classified as an Asset, and is organized (or presented) on the financial