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A good accounting practice is vital to a company’s success - Research Proposal Example
Finance & Accounting
Pages 10 (2510 words)
Success of a company depends upon good management.It is the effective management of labour,financial resources, procurement of raw materials,production,marketing,sales and customer relationship.Every transaction is considered here in terms of cost value, and is accounted in books in a preconceived and designated manner…
Success of a company depends upon good management. It is the effective management of labour, financial resources, procurement of raw materials, production, marketing, sales and customer relationship. Every transaction is considered here in terms of cost value, and is accounted in books in a preconceived and designated manner. Precisely it is the accounting or recording of how money comes and how money goes and how much money is saved. Without this accounting of transactions no endeavor and no business will survive to flourish. The main characteristics of financial accounting are giving information about the asset, liability, equity, income and expense of a company.
The key to the success of a business lies in the true accounting of the above elements in financial accounting. The public put trust on the transparency of the accounts and it will tell upon the good will of the company. If the accounting fails to meet the situations, the company will perish. Therefore, the qualitative characteristics of financial statements such as understandability, relevance, reliability and comparability should be enforced while preparing the financial accounting of a company. The qualitative characteristics will provide the necessary information to the creditors as well as the investors for keeping a watch on the performance of the company.This study is focused on the financial accounting practice related to a company with a very small investment. For a company instituted with a capital of 1000 the quantum of financial transaction will be very low. ...
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