The Purpose of Accounting

Topics: Balance sheet, Income statement, Generally Accepted Accounting Principles Pages: 3 (824 words) Published: March 7, 2013
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Phase 1 Individual Project|
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ACC310-1301B-03 Instructor : Lataunia Green|

|
Phase 1 Individual Project|
|
ACC310-1301B-03 Instructor : Lataunia Green|

February 25, 2013
Authored by: Tim Jones

February 25, 2013
Authored by: Tim Jones

Table of Contents
The purpose of accounting3
The objective of accounting3
Important to the company4
Accountant's integrity5
Technologies impact on the accounting profession5
Conclusion6
Bibliography7

Accounting for Non-Accounting Majors
The purpose of accounting
Is to gather and report financial evidence about the cash flow, performance, and financial position of that business. “Once this information has been entered into the accounting records, it is then made into a financial statement, which includes the following ■ Income statement: the results of the operation during an accounting period. It shows the revenue and expenses, and the profit or loss for that accounting period. ■ Balance sheet: presents information about an individual's assets, liabilities, and shareholders' equity, formula used to get results: Total assets = Total liabilities + Equity ■ Statement of cash flows: the range of actions that produce and use cash. ■ Statement of retained earnings: settles changes during the accounting reporting period. The general calculation structure of the statement is: Beginning retained earnings + Net income - Dividends = Ending retained earnings” (CPE, 2013) The objective of accounting

To keep systematic records: an organized record of financial transactions. To protect business properties: protects a business property from unwarranted use.

To ascertain the operational profit or loss: establishes the net profit that is earned or loss suffered on business accounts. To ascertain the financial position of business: The profit and loss account gives the amount of profit or loss made by the business during a particular period. To facilitate rational decision...
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