The Importance of Financial Accounting Introduction According to Weygandt‚ Kieso and Kimmel (2012)‚ financial accounting is identifying‚ recording and communicating the economic events of an organization to‚ mainly‚ external users. Through financial accounting‚ some financial reports will be generated. Four financial statements are frequently used to report and analyze the financial status of companies and they are Income statement‚ Retained Earning Statement‚ Statement of Financial Position
Premium Income statement Balance sheet Financial statements
Accounting Cycle Intermediate Financial Accounting ACC/421 July 11‚ 2011 Accounting Cycle An accounting cycle is a sequence of six steps in the processing of financial transactions (from the time they occur to their inclusion in financial statements) pertaining to an accounting period. These steps are: (1) analyzing the transactions as they occur‚ (2) recording them in the journals‚ (3) posting debits and credits from journal entries to the general ledger‚ (4) adjusting the assets with
Premium Balance sheet Accounts receivable Income statement
The world of accounting opens doors of opportunity for investors‚ stockholders and many businesses and organizations. However‚ accountants must follow guidelines established by “The American Institute of Certified Public Accountants”. (AICPA) Council designated the Federal Accounting Standards Advisory Board or (FASAB) as the body that establishes generally accepted accounting principles (GAAP). Accounting Standards GAAP is considered to be collection of methods used to prepare‚ process and
Premium International Financial Reporting Standards Financial Accounting Standards Board Financial statements
reform and delayed the process all to the benefit of the businesses it should be regulating. “Fraud has never been legal‚ so why has it not been prosecuted?” (Prasch) Renewed interest of ethical issues in the accounting profession is due to scandals involving accounting fraud‚ i.e. Enron‚ WorldCom‚ and Tyco. “Client pressure to present a favorable financial picture of a corporation’s health may lead to ethical breaches” (Adkins & Radke) “New calls for regulations…are specifically concerned
Premium Ethics Morality Business ethics
Accounting Standards and Their Importance AS-1: DISCLOSURE OF ACCOUNTING POLICIES The following is the text of the Accounting Standard (AS) 1 issued by the Accounting Standards Board‚ the Institute of Chartered Accountants of India on ’Disclosure of Accounting Policies’. The Standard deals with the disclosure of significant accounting policies followed in preparing and presenting financial statements. AS-2: VALUATION OF INVENTORIES A primary issue in accounting for inventories is the determination
Premium Balance sheet Generally Accepted Accounting Principles Income statement
Importance of accounting ethics Ethics is a branch of philosophy that judge human beings on wrongs and rights concerned with the nature of value and the standards by which human actions can be judged .The term is also applied to any system or theory of moral values or principles. Accounting is the mechanism that offers information regarding the financial position of the organization or business. This type of information is critical to investors as it provides them with important and detailed
Premium Business ethics Ethics Finance
Introduction The purpose of management accounting in the organization is to support competitive decision making by collecting‚ processing‚ and communicating information that helps management plan‚ control‚ and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of “management accountant.” Often many individuals function as accountants within the organization‚ but these individuals
Premium Management Management accounting Control
crucial to keep clear and accurate record keeping. This is carried out as a professional duty of care by a registered nurse as it is an integral part of nursing and midwifery practice. Accurate record keeping ensures high standards and improves stability of care. All records should be clearly written to enable any health care professional to know what is wrong with the patient‚ what treatment and care they may need or be receiving‚ their progress and their plan of care. Clear record keeping supports effective
Premium Patient Health care Hospital
The importance of accounting to the stakeholders of an organisation Accounting must be understood as a complete‚ consistent‚ logical system for collecting and processing data on the assets of the company and its activities‚ as well as the presentation of economic and financial information. The primary objective of accounting is the development and provision of information about assets components and conducted by the company business. This information is used primarily by: * Board business
Premium Investment Asset Economics
Importance of Human Resource Accounting: Human Resource Accounting provides useful information to the management‚ financial analysts and employees as stated below: a) Human Resource Accounting helps the management in the Employment‚ locating and utilization of human resources. b) It helps in deciding the transfers‚ promotion‚ training and retrenchment of human resources. c) It provides a basis for planning of physical assets via-à-vis human resources. d) It assists in evaluating
Premium Balance sheet Financial statements Human resources