Answer / Shiva Tyagi

Accounting determination refers to the process of recording, classifying, and summarizing financial transactions. It is typically performed using generally accepted accounting principles (GAAP) or international financial reporting standards (IFRS). Here's an overview of the accounting determination process:

1. Identify and record each transaction in the books of accounts.
2. Classify transactions into appropriate categories based on their nature (e.g., revenue, expense, asset, liability).
3. Summarize the classified transactions to create financial statements such as the income statement, balance sheet, and cash flow statement.

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