...The Role of Accounting on Business and Our Society Angel Ramos Professor Darlene Green-Connor ACC 100: Accounting I March 2, 2014 The Role of Accounting on Business and Our Society There are many decisions that companies make every day in order to be in business as well as to ensure it continues to stay in business. If in retail, such examples would be to extend its inventory or cut back on an item, place certain product on sale or on clearance, or even if it would be better to relocate or sell the company. Before making any of these decisions, management and the decision makers need to know how the company is doing. There are valuable key point indicators that can help in the ultimate direction but no other report is more commonly used than the financial statement. The financial statement of a company tells the story of where the company stands in regards to their financial position, business strategy and future earnings. “As businesses have expanded internationally, so has the need for consistency and comparability in the financial reporting of events and transactions in the financial statements” (Ward, p.78). They are commonly standardized in a format that can be viewed and translated by financial and non-financial people alike. The four major components are the Income Statement, the Owner’s Equity Statement, the Balance Sheet and the Statement of Cash Flows. Financial Statements Income Statement The Income Statement is gathered within a specific time period...
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...The Role of Accounting on Business and Our Society Stephanie R. Phillips Professor Cedano Accounting 100 February 27, 2014 When most people think of accounting, they think taxes, but accounting is so much more than that. Accountants are responsible for maintaining the financial health of our businesses. They also practice with an ethical standard that protects the public from unfair and one sided business and government practices. So next time you take your box of unsorted receipts to your tax preparer be sure to thank them for what they do the rest of the year. The four financial statements in the accounting process are an income statement; owner’s equity statement; balance sheet; and statement of cash flow (Weygandt, Kimmel, & Keiso, 2013, p. 21). Each of these statements is vital to internal and external users in order to provide relevant financial data. An income statement lists revenues and expenses that result in the net loss or income of a company during a given time frame, usually at the end of the month and the end of an accounting cycle. The owner’s equity statement accounts for any change in equity, it also records all investments and drawings made by the owner. The balance sheet shows a company’s assets, liabilities, and owner’s equity. In essence, the balance sheet shows what a company has and what a company owes. The statement of cash flow accounts for any cash in, out, or invested during the designated time period. The statement of cash flow must account...
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...balance sheet shows the big picture of a company’s Assets, Liabilities and any Owner’s equity that the company has at that particular time. Statement of cash flow – The purpose of the statement of cash flow is, so a business owner is aware of any financial events that could have a reverse effect on the company’s ability to meet their obligations. A balance sheet is most effective in communicating the financial health of an organization because it shows the financial transactions of a company front one point to another. Questions: 2 A public accountants duties include preparing and verifying important financial documents, analyzing budgets and planning finances as well as bookkeeping, and auditing tasks. Public accountants can give advice and provide basic financial information from clients to corporations. Certified public accountants can do the same things that public accountant due as well as overseeing budget and financial management, create and analyze budgets, and advise management on tax ramifications of business decisions. Accounting is an important part of any business. It records the way a business grows, and makes any suggestions on how to improve. Accounting has become one of the fastest growing careers because it expands even more each time a new business starts up. In today’s...
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...Assignment #1- The Role of Accounting on Business and Our Society ACC 100 March 2, 2014 Financial Statements There are three financial statements that are used in the accounting process; Income statement, Statement of Owners Equity and Balance Sheet. The purpose of the income statement is to report a firm’s earnings over a period of time which is usually their previous fiscal year. Statement of owners’ equity reports the changes of the company’s transactions for a particular time period, all changes and edits can be reviewed in a detailed view. The balance sheet list the three major accounting equation within a detailed time period; assets, liabilities and owner’s equity. The most effective way to communicate the financial stability of a company is through the balance sheet summary. The balance sheet allows the company to keep a steady track of their spending and what is outstanding on their books; this can eliminate financial surprises and allows the company to make preparations to recover in a positive way. Major Functions of an Accountant and Certified Public Accountant An accountant and certified public accountant plays a vital role to a company’s financial success, their main duty is to monitor and keep track of the company’s financial records. The role of an accountant is slightly different than a certified public accountant, an accountant for a corporation will manage the finances, purchasing and business transactions with outside firms. They are the financial...
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...Critical Perspectives on Accounting- MMPA 516 Journal This Journal provided me an opportunity to express my views and critically analyze the different aspects to which accounting relates. It had been a great experience and a great approach to express ones opinion. 2014 Harleen Kaur Juneja 300289064 6/3/2014 Critical Perspectives on Accounting- MMPA 516 Journal This Journal provided me an opportunity to express my views and critically analyze the different aspects to which accounting relates. It had been a great experience and a great approach to express ones opinion. 2014 Harleen Kaur Juneja 300289064 6/3/2014 TABLE OF CONTENTS 1. INTRODUCTION Page 2 2. ACCOUNTING IN ITS WIDER SENSE Page 3 3. ACCOUNTING AND EDUCATION Page 4 4. ACCOUNTING AND WAR Page 8 5. ACCOUNTING AND GLOBAL FINANCIAL CRISIS Page 11 6. ACCOUNTING AND CSR Page 13 7. REFERENCES Page 15 INTRODUCTION In this course I was surprised to see the other face of accounting. Till date I use to see the stereotypical accounting course that teaches us on a pattern to make us number crunchers who can arrange, categorize, and report details in a manner so unreasoned that only other accounting student can understand them. I had not seen to possess the more important reasoning skills that are necessary for the real life problem solving and business leadership, except to my exception in the MMPA 511 course taught by Arun Elias...
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...The Role Of Accounting On Business And Our Society Skyya Charles Strayer University ACC100 Ekaterina Kouprianova The Role of Accounting on Business and Our Society Accounting is considered to be a very vital career in the society because it deals with various fundamental positions in organizations and institutions such as management, financial recording, budgeting and control and also in business innovations. It is what every for-profit and non-profit organizations need because it deals with recording the progress of the organizations or institutions, analyzing figures and more importantly determining the future of a firm. This is achieved through analyzing and scrutinizing the current financial records and the previous years’ financial records. Accounting integrates various financial statements such as income statement, balance sheet and also the statement of owners’ equity (Lasser Tax Institute, 2010). This implies that there are various careers that are linked to accounting, and these are with inclusion of accounting clerk, accounting assistants, budget analyst, accounts payable clerk and chief financial officer (CFO). It also has careers such as staff accountant, Certified Internal Auditor and forensic accountants. Career Options Chief Financial Officer (CFO) Chief Financial Officer (CFO) is very important personnel in determination of the overall success of an organization. The officer is obliged to offering...
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...The Role of Accounting on Business and Our Society Adrian Smith Accounting 100 Prof. Eric Osei A Financial statement is a record of financial activities of a business entity. Main objective of financial statements is to provide information about financial position, performance and changes in financial position, and flows of cash in the business organization which in turn is essential in making decisions. In order for financial statements to provide the necessary information, they have to abide by the principles of understandability, relevance, reliability and comparability (Alexander et al, 2005). The first financial statement under consideration is statement of financial position. It is used to report on assets, liabilities, and capital of an entity. Assets are resources which have economic value attached to them, for example cash, debtors and inventory. Liabilities on the other side include creditors, deferred tax and accruals. Finally, capital is the owner’s equity. Statement of financial position is used to ensure that assets balance with combination of liabilities and capital. Second is the statement of comprehensive income. It provides information on revenues, expenses and profits incurred in a particular period of time. Its major purpose is to help in determining whether the business entity is operating at a profit or loss in a particular trading period. It also serves to reveal the rate of earning per share that is the amount of to be given to each stakeholder. Statement...
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...and Abilities American Accounting Association Introduction The following will describe the American Accounting Association (AAA), the ability the organization can attribute to my professional career and knowledge, and how this knowledge can be an attribute to my career success. How it will also help me to develop strategies and skills that will in the long run allow me to be a great asset to any agency in which I choose to work for . Describe AAA The American Accounting Association promotes worldwide excellence in accounting education, research, and practice (AAA, 2010). The AAA, founded in 1916, was first known as the American Association of University Instructors in Accounting until 1936 when the association name was changed. The American Accounting Association is composed of voluntary persons and professionals that are interested or involved in accounting, accounting education, and research (AAA, 2010). American Accounting Association Mission The American Accounting Association mission is “to further the discipline and profession of accounting through education, research, and service” (AAA 2010). The Association acknowledges that its members share a number of common values, which include the importance of their personal integrity, their objectivity, sense of community, open communications, respect for each other, high ethical values and personal behaviors, and an obligation to serve important stakeholders, including the broader society within which we operate...
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...The Role of Accounting to Business and Society Justin A. Case Strayer University Introduction to Accounting ACC101 Professor Jose Martinez August 27, 2013 Introduction In today’s economy Accounting plays a huge role, as it points or refers to accountability and transparency in the business environment and paints a picture of any business. Also, it enables business managers and corporate leaders to make better comprehensive decisions regarding the financial shape of their business. Accounting is fundamentally described as a mathematical discipline in which allow companies to universally record, analyze and retrieve financial information that is critical to them. This information is then used to determine the companies’ financial positions consequently enabling the management team to make sound decisions depending on the information at hand. The Role of Accounting on Business and Our Society Financial statements are snapshots of a business's economic or cash flow condition. These are mainly formal financial activities, which are written to measure the performance, financial strength and the liquidity of the business. These financial reports include the balance sheet, income or profit and loss statements, and cash flow statement which are used to represent the businesses’ economic position. The income statement which reports the company’s financial status in terms of profits or losses made during a given period. It comprises of income and expenses, from which the...
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...RELEVANCE OF MY ACADEMIC QUALIFICATION TO THE ECONOMY Introduction Accountancy is the foundation of accountability in public and corporate governance. Accounting entails capturing financial activities, summarize and interpret them for its various users, because financial information is necessary for informed decision to the management, employees, regulatory bodies, potential investors and other stakeholders. Accordingly, accounting is often referred to as the language and soul of business for the fact that it produces and keeps pertinent financial information of business entities. The profession strives to protect its core values of integrity, competence and objectivity which remains the time tested building blocks for what has been a truly successful and honoured profession. For the study of accountancy in Africa, Nigeria is important for several reasons. Nigeria, the most populous country in Africa, has crude oil as her main export and she has remained a rentier state in terms of revenue generation. The need for legal regulations for exercising accounting profession came to reality on September 1, 1965 by the enactment of the Institute of Chartered Accountants of Nigeria Act (ICAN). Some decades later the Association of National Accountants of Nigeria was established by law. For the accountants to truly play a leadership role in their field, they must be proactive participants in the development process. Nigeria became independent in 1960 at the crest of a global wave of decolonization...
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...D | 5 | Bibliography | 6 | Financial Accounting 1 Group Assignment Question A As what we understand for the words of Professional Accountant is who has experience and skills in establishing and maintaining accurate financial records for a business. Accountants’ works including control the system of record, auditing books and prepare a financial statement (Hossain, 2013). The accounting profession in Malaysia is controlled by the Malaysian Institute of Accountants (MIA) through the powers discussed by the Accountants Act, 1967. In Malaysia, we needed some certificates to show that we are accounting educated so that we are having the abilities to work as certain company’s accountant. Those certificates are known as ACCA, LCCA, CIMA and also MICPA. Start from few years back, Malaysia standard of requiring accountants was raised from LCCA to ACCA. With ACCA certificate, a person can consider as a professional accountant and so he or her has the ability to finish the duties. Question B In an organization, accountant plays a very important role. Without an accountant, the organization cannot work effectively (role of accountant, 2013). Accounting is a special division of knowledge. Both the accounting system and the accountant provide a very useful service to the society. There are a lot of stuff can be done by an accountant. Firstly, an accountant does bookkeeping. They keep a systematic record of the transaction in the business to ensure the organization operation. Accountant...
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...Business Ethics and Corporate Responsibility Introduction Corporate Responsibility or Corporate Social Responsibility (CSR) has been a term coined in the previous century in order to define the social responsibilities of corporate heads and their corporations in securing the trust of its community by determining and fulfilling its roles towards the betterment of society. Simply following the rules set down by legislation would not do; corporate authorities and workers alike were demanded to be ethically inclined and considerate of how their actions affect society in general, both as residents and providers within their immediate communities. But both ethics and responsibility are vague terms, and prior to the 19th to 20th centuries, neither of them has been attached to business entities like corporations. Business ethics and corporate responsibilities, then, are much vaguer terms in that they entail more than simple and faithful provision of goods and services to people; some may even think that corporate giants and ethics do not exactly go together, or even share a superficial partnership. But these revolutionary concepts have played a major role in redefining corporations in the 21st century; these conceptual standards remain strong factors towards corporate determination of company action and assessment of overall company performance today. This paper will discuss business ethics and corporate responsibilities as sister terms, but also as discrete concepts, both of which...
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...Definition of 'Accounting Information System - AIS'The collection, storage and processing of financial and accounting data that is used by decision makers. An accounting information system is generally a computer-based method for tracking accounting activity in conjunction with information technology resources. The resulting statistical reports can be used internally by management or externally by other interested parties including investors, creditors and tax authorities. | Answer:There are various importance of accounting information to a business entity. Getting to know what an accounting information is and the importance (need) of it is a great step to improving one's capital base, both from the finance aspect to the resources (raw materials) an organisation uses in carrying out its objectives. An accounting information is simply the data which an organisation/business entity is able to make known to its users. It should be taken note that these users of accounting are of various sections - to which a business entity is one of. A business entity will require an accounting information so as to enable it manage and control its finances and resources. It also needs it for it to be able to improve on its level of profit earning, should it realises it is declining in its profitability level. It also needs to for it know the differences between its marginal liability and its marginal assets. There are so many importance of a business information to a business enterprise, but the...
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...Accounting and its role in society Accounting is concerned with collecting, analysing and communicating economic information (Atrill & McLaney, 2004, p1). However in order to develop a broader understanding of accounting and the central role it plays in society, we need to consider it from a social perspective. Individuals in society coexist by establishing relationships with each other. Another way of viewing society is by segmenting it into different groups or arenas, for example the social, economic, organizational and political arenas (Kyriacou, 2007, Lecture 1, p4). In order to function effectively, these different arenas need to communicate and it is accounting information that facilitates this communication. According to Kyriacou (2007, Lecture 1, p5) accounting information serves many important purposes, for example assisting users in making informed decisions, in relation to the effective allocation of scarce resources. Therefore accounting information can be seen to be a potent influence in society, which affects everybody. This is illustrated by the National Coal Board case (Cooper et al, 1985, p10) were the measurement of accounting profit was used to justify the closure of coal pits, causing an impact on electricity prices, jobs and taxes. Accounting has a long history and as demonstrated by Hines (1988, p251-261) it is seen as being socially constructed i.e. it is practised by people for people and therefore it is more of an art rather than a science. Unlike...
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...usefulness of accounting theory is evident at various levels within the accounting profession and society in general including, standard setters, accounting professionals and users of accounting information. This essay will address two key areas, firstly, a personal reflection on this course and why studying theory is essential for practicing accountants. The second part is a critical evaluation of the conceptual framework and why it is an essential part of accounting literature. Areas evaluated include the purpose and benefits of a conceptual framework, a brief history of it in Australia, principle based versus rules based standards and some criticisms of it are discussed. Personal reflection I must admit, when scrolling through the list of courses I have left to complete my degree Accounting Theory did not jump out as one I was eager to enrol in. This is in no small part due to my lack of appreciation of how knowledge of the development of theory can give context and power to understanding changes. Whereas before I was more about practice and ‘getting it done’, it has become apparent that theory generally is an intrinsic element in advancing our understanding of our environment, culminating in improvements in practice. It is not a means of simply explaining or predicting behaviour, nor is it there only to serve as a framework for further inquiry (although these are important benefits of theory). Theory has a much more significant and elegant role to play in accounting than simply...
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