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Accounting Theory : 'Satisfying multi users and their needs in accounting is easy to achieve' - Essay Example
Author : delphine05
Finance & Accounting
Pages 6 (1506 words)
The birth of accountancy can be retraced to the early days of human (Simons, 2004). There was a great urge for recording and maintaining the information regarding the agricultural products along with their quantities…
Accounting information does not only include the daily transaction details, but also comprise of the annual bills and receipts that are made by an entity. Luca Pocioli has been regarded as the Father of Accounting and his book, “Summa on Arithmetic Geometry, Proportions and Proportionality” has been regarded as the main text for the children of the merchants. The book describes the double entry system of accounting along with the journal and ledger entries. Accountancy comprises of two parts accounting and book-keeping. Both of these are important to the merchants from the earlier days and later, it became the key source of financial information for the companies (Macintosh, 2002). Accounting has played an important role for the organisations as well as the public in providing information about the financial condition of the organisation. It has provided with a whole lot of information to a wide range of users whether internal or external to the organisation. This information satisfies the number of users who are dependent upon the information. The essay elaborates the use of accounting information for these users and states whether it is simple enough to achieve the satisfaction of the users (Broadbent, 2002). ...