It consists of financial activities which include collecting, recording, analyzing and communicating the financial information to others. The financial data is a collection of facts which is expressed in numerical symbols and characters. The major task of the accountant is to records the financial transactions and converts data into financial information. The study will deal with the various accounting concepts that have helped the accountants in dissemination of financial information. Accurate financial presentation helps in the systematic recording of the financial transactions and also helps in identification of errors in the accounting procedure. The author of the study will able to give an insight into the basic accounting concepts and its impact on the business activities. Finally, the study will conclude with the various accounting concepts and its practical applications. Accounting Concepts & Procedures Accounting is definitely concerned with the recording of transactions that affect the business activities and is also related to preparation of income statement and the balance sheet. As per the AICPA committee of terminology accounting is regarded as a process of recording, classifying, summarizing and in systematic and significant manner. It is called an information system which helps in the identification, measuring, and communication of economic financial information which permits rationale and judgmental information among users. 1) Art of recording the business transactions: The systematic method of recording financial transactions in the books of accounts which helps in the fulfilment of the objective of the user and the accountant. 2) Systematic Process: Recording financial transactions is regular in nature and is done in methodical and chronological manners. Accounting is done through the application of various rules, regulations, principles and expertise. 3) Measurable in terms of money: The accounting transactions are measurable in terms of money and need to be recorded in the books of accounts. These accounting events are measurable in terms of money. The events which are not measurable in terms of money are not recorded 4) Information Systems: It is information systems that measures the accounting process and communicates about the financial information through an economic entity. It also supplies financial information to the decision makers. 5) Medium: It is also regarded as an important medium for communicating the financial information and their interpretations. The main objective of the financial accounting would be to provide the necessary information to the user in a systematic process. There are various branches of accounting; cost, managerial and financial accounting procedures. It helps in ascertaining the results of the business transactions and also assessing the true financial position of the company. The major functions would be to identify and record the financial transaction of the organization which can be measurable in terms of money, grouping transactions that are similar in nature of a particular place which is done in ledger, summarizing the financial transactions which involve the preparation of income statement, trial balance and balance sheet and interpretation of financial statements by ascertaining the financial position of the company. Some of the major objectives of accounting would be to ascertain the results of a business organization within a particular time period ascertain the true financial position of a business organization and provide the necessary financial information to the users. The different types of users of accounting wo
Accounting concepts play an important role in recording the financial transactions and is a discipline that provides certain information related to financial transactions. …
With a continuous development of the mankind and human civilisation the implication of accounting and its importance also have changed to a considerable amount. As stated by Elliott & Elliott (2007), “Accountants are communicators
Thus the current and the non-current assets and liabilities of the company has been assessed so as to investigate on the valuation method thus adopted by the company. At time the valuation of the assets of the company gets inflated due to the method of valuation thus adopted by the company.
Essay, Finance and Accounting. Accounting entails the preparation of financial reports. The research delves on the companies’ compliance with International Financial Reporting Standards. The research delves on cosmetic accounting. The companies’ compliance with reporting standards enhances reliance on financial reports.
This paper shall provide suggestions, techniques, and guidelines for successful financial management, which -- when tempered with individual experience and the unique requirements of a particular industry -- may be expected to enhance one's ability to effectively manage the financial resources of an organization.
In recent years there has been a major increase in the international importance of this concept. This has come about with its adoption by the European Community in the Fourth Directive on company law and its implementation in all Community countries. However, this concept has never been defined in UK legislation, and a variety of meanings can be attributed to it.
On the other hand, the non-current assets of WMT include fixed assets like property, plant and equipment acquired by the company for intended operations. In this section, the corresponding accumulated depreciation or depletion is deducted from the property, plant and equipment to account for the wear-and-tear of these fixed assets.
The decision makers of both the private companies and public bodies do not recognize the economic significance of the natural resources and the need of environmental performance. Apart from market reputation, there exist few incentives to
existence of accounting records is to minimize or reduce the effect of principal-agent problem; its impact is reduced by measuring and close monitoring of the performance and reporting the results to parties concerned.
Financial accounting is a discipline which has evolved over
12 pages (3000 words)Essay
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