...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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...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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...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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...acknowledge and extend our heartfelt gratitude to the intelligence and co-operation of those people who had been so easy to let us understand what we needed from time to time for completion of this report. We want to express our special gratitude towards Ma’am Rafia Ayub of Cost Accounting, for giving us such a unique project. CHAPTER O5: CLASSIFICATION OF COST Cost can be classified into two categories i.e. product cost and period cost. 5.1.1 Product cost Product cost includes; • Direct material • Direct labor • Factory overheads All elements of product cost are already stated above. 5.1.2 Period cost It consists of all the cost related to Marketing, Selling and Administrative...
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...Financial statements are the basic statements that summarize the financial activities of a business and are prepared by businesses to indicate the financial steadiness of the business to investors, creditors, and other external entities (McGraw-Hill Higher Education, 2009). The income statement is a representation of the revenues and expenses for a specific period of time in a business. Its purpose is to detail the revenues, expenses, and net income or loss. A net income is the result of revenues exceeding expenses and a net loss is the result of expenses exceeding revenues. The income statement does not include investment and withdrawal transactions between the owner and the business in measuring net income. The investment and withdrawal transactions of the owner are not included on the income statement when measuring net income (Weygandt, Kieso, and Kimmel, p. 23). The owner's equity statement summarizes the changes in owner's equity for the same time period that the income statement covers and indicates why the owner’s equity has increased or decreased during that time period. The data included in the owner’s equity statement is derived from the income statement. It shows the owner’s beginning equity, investments, net income or loss, and the drawings of the owner (Weygandt, Kieso, and Kimmel, p. 23). The purpose of the statement of cash flows is to provide information on the cash receipts and payments for a specific period of time. It reports the effects of a company’s operations...
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...The Role of Management Accounting in the Organization 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 typically operate as financial accountants, costs accountants, tax accountants, or internal auditors. However, the ability to develop and use good management accounting (which covers a lot more ground than the product costing done by cost accountants) is actually an important ability for many individuals, including finance professionals, operational and marketing managers, top-level executives, and information technologists. Generally, in a very large company, each division has a top accountant called the controller, and much of the management accounting that is done in these divisions comes under the leadership of the controller. On the other hand, the controller usually reports to the vice president of finance for the division who, in turn, reports to the division’s president and/or overall chief financial officer (CFO). All of these individuals are responsible for the flow of good accounting information that supports the planning...
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...Introduction Accounting is a system, and its practice is a workmanship or art created to individuals screen their monetary exchanges. Accounting gives individuals a money related photo of their undertaking. Its unique - and continuing – crucial reason for existing is to give data about the financial dealings of a man or association. At first, just the individual or association required the data. The legislature required the data. As the economy turn out to be more intricate and controlled, the quantity of the individuals who required the data – the quantity of client of monetary proclamations – expanded. The degree of the significance of the data to the client builds the moral variables administering the improvement and payment of that data....
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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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...The Role of Accounting in Business and Society According to Merriam-Webster the full definition of accounting is the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results. An accountant is one who is skilled in the practice of accounting or who is in charge of public or private accounts. (http://www.merriam-webster.com, n.d.) Someone who has obtained a bachelor’s degree in accounting can pursue many different accounting career fields. According to the Bureau of Labor Statistics the median annual wage for accountants and auditors was $63,550 in May 2012. Employment of accountants and auditors is projected to grow 13 percent from 2012 to 2022, about as fast as the average for all occupations. (Bureau of Labor Statistics, n.d.) Many start out in entry level accounting positions or they may take the Uniform Certified Public Accountant Examination administered by the NASBA (National Association of State Boards of Accountancy) to become a Certified Public Accountant. CPA’s must also complete certifications and educational requirements as required by their individual states. A CPA is capable of handling many job functions in accounting from auditing and reporting to tax preparations for corporations and individuals. A CPA also assists clients with other financial functions, including asset management, risk assessment, and internal reviews. A CPA may also choose to work for himself as a public accountant or by...
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...1 SUSTAINABILITY AND THE ROLE OF MANAGEMENT ACCOUNTING 1 SUSTAINABILITY AND THE ROLE OF MANAGEMENT ACCOUNTING Traci Buxton French Salem International University ABSTRACT: A majority of CEO’s at large international companies consider sustainability efforts to be a high priority development item on corporate agendas, yet less than 30% of companies actively seek new capital investment opportunities in this area (McKinsey, 2010, para. 1). These same executives feel that value from sustainability initiatives is gained through “earned goodwill, improved reputation, cost savings and growth opportunities” (McKinsey, 2010, para. 3). The disconnect between perceived value of sustainability programs and development of these initiatives is partly due to the difficulty of defining measurable parameters to determine progress, quantify results, engage stakeholders and improve corporate profitability. A second issue has been to integrate separate, isolated sustainability efforts into core business practices in order to facilitate long-term change. This effort has resulted in improved customer satisfaction and increased stakeholder engagement. Sustainability in the business realm refers to attainment of business goals that maximize revenue while minimizing the negative impact on society and the environment. In 1981, the UN defined sustainable business development as “policies and procedures that meet the needs of the present without compromising the ability of future generations to...
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...Introduction International accounting standard No.2 (IAS2) "Inventory" gives the rules which should be followed during the recording and presentation of inventory. Inventory refers to goods which are held by a firm for sale, are in the production process or are materials which will be consumed in the production process or in giving out of services. This standard does not apply to financial instruments and it gives out a guideline on how to measure an asset which is categorized as an inventory, which concept constitute of the cost and at what time an expense occurs and the information that should be disclosed while preparing the financial statements (International Accounting Standards Board, 2008, p.977). History In the year 1974 during the draft of standard, the name was changed to "inventories" from "valuation and presentation of Inventories in the Context of the Historical Cost System" the first draft was affected on 1st of January in the year 1995 and this was 21 years after the first draft exposure. On 18th of December 2003, the standard was revised and took effect as from the strart of January 2005. In the year 2003, there was a revised IAS 2 whereby different cost formulas for inventories were incorporated into the standard. These were superseded from SIC 1 on consistency. On December 1997, SIC 1 was issued and was effective as from 1st January 1999. sic 1 required that that the same cost formula was to be used for inventories with the same characteristics under IAS...
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...Business Communication From personal context: An individual can do nothing without communication. He or she can achieve his or her goal of life and maintain proper relation with relatives and other by effective communication. Form social context: Men of societies communicate each other in various meeting, function etc. and contribute for social development. From organizational context: Communication involves proper planning, decision making, controlling, directing, coordinating etc. and plays role to achieve organizational goal. From political context: Political parties depend on various media of communication to face their opposition and get power. Such as: Radio, television, newspaper, meeting, public gathering, press conference etc. Form religious context: Without proper communication it is not possible to give perfect concept about each religion to their followers. Religious group depend on interpersonal, intergroup and mass communication to preach their religion. From global context: Every nation of present world depends on each other in different affairs. For this reason UN, EU, NAFTA, SAARC, are formed to maintain international communication. From national context: Effective communication system helps general public to participate various government activities through their elected representatives and coordinate among the various government authorities and departments to develop socio-economic condition of the country. From the context of business: ...
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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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...Assignment 1: The Role of Accounting on Business and Our Society Professor ACC 100 – Accounting The Role of Accounting on Business and our Society Accounting is an essential part of modern business. From the smallest start-up to the largest fortune 500 hundred company, accounting is how business growth, contraction, or direction is determined. When entering the accounting world you will be required to deal with the four financial statements, the balance sheet, the income statement, the statement of cash flows, and the owner’s equity statement. The purpose of the balance sheet is to reveal the economic/financial position of the company at a set point in time. The balance sheet follows the basic accounting equation, assets = liabilities + owner’s equity. The income statement is what an accountant uses to determine the operation of a business. You would take the revenues minus the expenses to determine the net income for the business. The statement of cash flow is useful in determining a business’s capability to pay its bills. It represents a breakdown of all transactions, and show how the company acquired its cash and what it is doing with it. Lastly there is the statement of owner’s equity. This statement shows the variations in retained earnings. While all of the financial statements are needed the most important would have to be the cash flows statement. Cash flows is most important because it provides you with the information needed to see if a company...
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...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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