The role of accounting

Topics: Finance, Economics, Management Pages: 2 (502 words) Published: October 28, 2014

The role of accounting
The role of accounting in business is to help interested parties (internal and external) to make business decisions. LEARNING OBJECTIVE
Explain how the accounting process aids in the making of business decisions

KEY POINTS
Financial accounting generates some of the key documents, including profit and loss account showing the method of business traded for a specific period and the balance sheet which provides a statement showing mode of trade in business for a specific period. Without these financial documents it would be impossible to run the business or to make decisions regarding the business. The accounting process consists of measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers. Management accounting also motivates managers and other employees towards achieving organizational goals. A well motivated staff performs better and is more productive. Organizations are able to achieve their goals if employees are well motivated.

TERM
financial accountingFinancial accounting is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders.

Give us feedback on this content:  
FULL TEXT
The role of accounting in business is to help interested parties, both internal and external, to make business decisions. The accounting process consists of measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers. Financial accounting generates some of the key company documents, including  HYPERLINK "https://www.boundless.com/definition/profit/" profitand loss statement or P&Ls. P&Ls show the financial details of a business over a specific period. Financial accounting also produces the balance sheet which...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about The Changing Role of Managerial Accounting
  • accounting Essay
  • THE ROLES OF ACCOUNTING ON BUSINESS AND OUR SOCIETY Essay
  • accounting Essay
  • accounting Essay
  • Accounting Essay
  • roles Essay
  • The Role of Accounting in Organizational Control Essay

Become a StudyMode Member

Sign Up - It's Free