Introduction to Accounting; No Comments on Introduction to Accounting Posted in essay examples By Essay Writer Posted on September 5, Assignment 4_ PART A. The basic accounting equation records business transactions in an organized system to show the impact on the company’s assets, liabilities, and owners’ equity. (Slater, Sep 24, · Title: Investigation of ICT Innovation in Accounting Education. Example essay. Last modified: 31st Mar Introduction: We live in the age of information and also needs to it for decision making. There are several fields that provide information such as Information and Communication Technology (ICT), Accounting Accounting Analysis On Management Accounting Essay Words | 5 Pages. Management Accounting Introduction: Management accounting technique is the procedure of understanding, analyzing, exam, calculating, deciphers, and transfers the verbal data to chase of company objectives. The section of bookkeeping is called as cost accounting
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Accounting is a language: a language that provides information about the financial position of an organization. When you study accounting you are essentially learning this specialized language. By learning this language you can communicate and understand the financial operations of any and all types of organizations. This is because the information required by most organizations is very similar and can be broken down into three main categories: Operating Information This is the information that is needed on a day-to-day basis in order accounting essay introduction the organization to conduct its business, accounting essay introduction.
Employees need to get paid, sales need to be tracked, the amounts owed to other organizations or individuals need to be tracked, accounting essay introduction, the amount of money the organization has needs to be monitored, the amounts that customers owe the organization need to be checked, any inventory needs to be accounted for: the list goes on and on.
Operating information is what constitutes the greatest amount of accounting information and it provides the basis for the other two types of accounting information. Order custom essay Accounting Introduction with free plagiarism report. Financial Accounting Information This accounting essay introduction the information that is used by managers, accounting essay introduction, shareholders, banks, creditors, the government, the public, etc… to make decisions involving the organization and its operations.
Shareholders want information about what their investment is worth and accounting essay introduction they should buy or sell accounting essay introduction, bankers and other creditors want to know whether the organization has an ability to pay back money lent, accounting essay introduction, managers want to know how the company is doing compared to other companies. This type of information would be very difficult to extract if every company used a different system for recording their financial position.
Financial accounting information is subject to a set of ground rules that dictate how the information is reported and this ensures uniformity. Managerial Accounting Information In order for the managers of a company to make the best decisions for a company they need to have specific information prepared.
They use this information for accounting essay introduction main management functions: planning, implementation and control. Financial information is used to set budgets, analyze different options on a cost basis, modify plans as the need arises, and control and monitor the work that is being done.
These principles are established by the Financial Accounting Standards Board FASB which is a nongovernmental agency funded by the accounting profession and contributions from business organizations, accounting essay introduction.
While there is no legal obligation for companies to adhere to GAAP, there are strong practical reasons to do so. From auditing to reporting accounting essay introduction to the US Securities Exchange Commission to applying for a loan, there are very compelling reasons for organizations to conform to the generally accepted standard. What Is The End Result Of All This Accounting Information?
These statements let people see, at a glance, accounting essay introduction, the financial position of an organization. These statements provide summaries of the operating information and are used extensively by people within and external to the company. The statements fall into one of two categories:. Flow Report — these statements show the flow of financial information over a period of time. Income Statement- An Income Statement also accounting essay introduction a Statement of Earnings, Statement of Operations, or a Profit and Loss Statement is a report that shows the flow of revenues amounts earned from business activity and expenses amounts paid in the course of operations over a given period of time, typically a month, accounting essay introduction, quarter, or year.
Statement of Cash Flow- As the name suggests, this is also accounting essay introduction flow statement that details the movement of cash through the organization over a specified period. The whole purpose of accounting is to provide information that is useful and relevant for interested parities when making decisions regarding the company and its operations. In order to do that effectively, a specific language and subsequent rules have been developed for users of the information.
By learning accounting you learn these rules and can then communicate financial information with others in a comprehensible and comparable manner. As many professional accountants and auditors state - accounting is a language of business which is accepted in all developed and developing countries.
Every company applies accounting because it is generally accepted that companies have to reveal certain financial and management information to the government and public users and of course because accounting is indispensable tool in business decision-making process.
With the development of information technologies there were developed many computer products software that make accounting as easy as ABC for those who uses them, accounting essay introduction. From this point accounting can be divided into two basic categories: those which apply manual accounting and those which prefer computerized accounting systems. This paper is targets the main features of manual and computerized accounting, their benefits and shortcomings, and their comparison.
From the accounting theory it is known that accounting cycle includes the following steps: journalizing the transactions, posting them to ledger accounts, preparing trial balancemaking adjustment entriespreparing adjusted to end-of-period trial balancepreparing financial statements and appropriate accounting essay introduction, journalizing and posting the closing entriesand preparing after-closing trial balance at last.
From the first look it is not very difficult and it is so indeed, but when there are thousands or millions of transactions the situation dramatically changes. Lots of transactions that must be processed in the accounting cycle make this process routine and even a little mistake or inaccuracy can cause all the cycle from the very beginning in order to find and correct the mistake. So as to shed some light on the matter lets examine accounting cycle more thoroughly.
Every transaction event that change the financial resources or obligations of the company must accounting essay introduction recognized, accounting essay introduction, classified and documented; in addition there must be corresponding accounts identified and changed.
The transactions are recorded accounting essay introduction appropriate journals general journal, sales journal accounting essay introduction with transaction data, affected accounts titles, debit and credit of each affected account and explanation specified in the journal record.
The above procedure is used for each transaction. All the journal records must be posted to the ledger on a periodic basis daily or weeklywhich is a group of accounts put together and classified assets, liabilities, revenue, accounting essay introduction, expenses and equity in other words general ledger summarizes all the transactions within a period of time. In addition there is a subsidiary ledger can be used, which is a more detailed source, where individual items comprised inventory, accounts payable and accounts receivable, accounting essay introduction.
General ledger contains controlling accounts which summarize the content of subsidiary ledger. At the end of accounting period with the help of general ledger there is a trial balance calculated to make sure that debit and credit are in balance if they are not equal it means that there is an error somewhere. Then there must be appropriate adjustments made like depreciation and income tax expenses, accounting essay introduction, adjusted records posted to the ledger and adjusted trial balance calculated.
After this there are financial statements should be prepared, which include balance sheet, income statement, statement of retained earnings and statement of cash flows. Then journal entries of temporary accounts are closed to permanent accounts and posted to the ledger, and at last after-closing trial balance can prepared, accounting essay introduction.
In order to stay on top companies have to analyze the performance of all organizational cells starting from unskilled workers and operating personnel, and finishing with accounting essay introduction managers and other key personnel and discover all the deviations from the plan, their causes, and finally companies management has to take corresponding measures to avoid accounting essay introduction deviations in the future.
These procedures are called internal controls and include the following five elements: accounting essay introduction environmentrisk assessment, monitoring, accounting essay introduction, information and communicationwhich are assessed separately and put together a single rate of organizations performance, accounting essay introduction.
Control environment means the way of organizations internal control which manager controls the employees, how and whom does that manager reports next about the plan performance etc. Risk assessment implies measures to determine all the potential risks in advance, their causes, probabilities and counter-measures to avoid and manage them; how can those risks influence companys performance and financial state; how to minimize the costs of facing financial risks etc.
Monitoring implies quality control of companys operations and personnel. Information and communication element means the control over communication flow and the quality of information flow within the organization in order to minimize the time of communication and information losses.
Internal control procedures allow to keep companies assets from dissipation and control productivity and usefulness of all departments. Lets return to the main issue of the paper. Manual accounting implies that employees perform the whole accounting cycle manually on a periodic basis: they calculate trial balances, journalize transactions, prepare financial statement reports and other routines. Of course it takes much time, resources and effort in large organizations. Computerized accounting implies that the only thing that employees do is recording transactions into the computer which processes the other steps of accounting cycle automatically or by a request.
But this is a very simplified view on the computerized accounting because transaction is a complex category which includes not only sales or acquisitions, but depreciation, premiums and wages calculation, dividends etc, accounting essay introduction. So computers provide accurate calculations and smart reports but it takes much time, resources and effort too and its difficult to assess which accounting type is more fast and economic.
If manual accounting requires qualified accountants to keep a record of business transactions, computerized requires accountants which can use specific software and thus they cost more. Computer software calculates faster but it does not know what you need until you can clearly explain what exactly you need. In addition good computerized accounting system can cost thousands and even millions dollars, depending on the complexity and the size of organization.
Computerized accounting provides better internal control report system for any given period of time computer can control thousands indicators simultaneously and create notifications to the appropriate departments or workers if some indicators do not correspond to the normal statewhile manual control takes more time.
Among the advantages of manual accounting there are: comparatively cheap workforce and resources, reliability, independence from machines, skilled workers availability; the disadvantages include: reduced speed, increased effort of accountants, relatively slower internal control reporting, routine work and some others.
Among the main advantages of computerized accounting there are: high speed and mobility accounting essay introduction reporting, reliability, accounting essay introduction routine work, increased accuracy, internal control system of increased productivity, easy back up and restoration of records; the disadvantages include: extremely high costs on developing, introducing and using the system, special trainings for personnel, increased personnel costs, dependence on machines etc.
Obviously both computerized and manual accounting have advantages and disadvantages but they perform the same task, and the final result is the same, accounting essay introduction. The main differences between them are the costs, speed and mobility. Thus small and medium businesses usually prefer manual accounting without detriment to quality while large corporations apply complex accounting systems which cost millions dollars but the effect from their application exceeds all the expectations.
This essay was written by a fellow student. You can use it as an example when writing your own essay or use it as a source, but you need cite it. Explore how the human body functions as one unit in harmony accounting essay introduction order to life. Accounting Introduction. Free Essays - PhDessay.
com, Nov 11, accounting essay introduction, Accessed October 7, comNov The function of Management Accounting is to utilize and supply accounting information to directors in a company, and by utilizing these accounting information directors will be able to do better. Accounting has evolved since it was foremost developed and has continued to germinate. The purpose of this essay is to research and discourse why accounting, accounting essay introduction, both fiscal and direction has.
White-collar offense has acquiring serious around the universe if comparison with the last few old ages. Bank fraud, recognition card fraud, cyberspace fraud, fiscal fraud, public corruptnesss and so on.
Undertaking 1 is about. This study will supply a brief history and background on the procedure of harmonisation in the European Union with respects to the 2 methods it employed: Directives and IFRS acceptance. Management accounting is a field of accounting that analyzes and provides cost information to the internal management for the purposes of planning, controlling and decision making.
Management accounting refers to. Introduction Do accounting essay introduction authors have the capability to write this thesis? Yes the authors have the capability to write on this thesis; they have the academic experience to make authoritative claims. We use cookies to give you the best experience possible.
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Introduction to Accounting
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Introduction to Accounting; No Comments on Introduction to Accounting Posted in essay examples By Essay Writer Posted on September 5, Assignment 4_ PART A. The basic accounting equation records business transactions in an organized system to show the impact on the company’s assets, liabilities, and owners’ equity. (Slater, Mar 10, · Introduction to Accounting Accounting is a profession used to make financial and business decisions. Billions of dollars exchange hands every day, in millions of separate business transactions. These are recorded and reported on using a comprehensive set of guidelines, referred to as Generally Accepted Accounting Principles (GAAP) Introduction At first glance, accounting can appear in a way that extremely complicated and confusing and lead to the untrained eye may struggle to Published: 13th October 14 Pages 4, Words The Business Taxation And Auditing
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