Accounting : What Is Accounting?

This process is referred to as bookkeeping, which is simply entering each transaction that affects the financial position of the business in a ledger.

Firstly the role of accounting is to record business transactions in a systematic way, for instance recording the amount of sales made to customers by John Lewis. This is done by the business to keep the records accurate and updated as well. If bookkeeping is done incorrectly, this will result in the business processing wrong payments or billings. For instance, if John Lewis does not do bookkeeping, the business will end up making payment to wrong suppliers.

Accounting is the study of how businesses track their income and assets over time. Accountants engage in a wide variety of activities besides preparing financial statements and recording business transactions. These activities include computing costs and efficiency gains from new technologies, participating in strategies for mergers and acquisitions, quality management, developing and using information systems to track financial

Accounting 22. A technique that establishes the rules and procedures to record, quantify, analyze and interpret economic events affecting the heritage of any economic organization or entity providing information useful, reliable, timely, and accurate which aims to ensure financial control.

Accounting is the study of how businesses track their income. Identify business goals and activities; describe the role of accounting in making informed decisions, the uses and organization of financial performance over an accounting cycle. Accountants engage in a wide variety of activities besides preparing financial statements. They spend a lot of time learning how to make the business profitable. Therefore, an accountant is perfectly positioned to become a Chief Financial Officer (CFO; the executive who is responsible for financial planning and record keeping for a company) because he or she probably has the understanding of what drives business and profits in a company.

Course Overview: A manager needs a general understanding of accounting which is the process of recording, classifying, reporting and interpreting the financial data of an organization. Discussion, case examples and analysis of double-entry bookkeeping techniques lead to a foundation for analysis of basic financial statements. Managerial accounting concepts then provide the analytical tools necessary for day-to-day management of the business enterprise. Ideally, the student will learn how to evaluate current accounting information and how to make the accounting system a better contributor to the management process.

In this assignment paper, I would like to describe the meaning of accounting, how accounting

Accounting can be defined in a number of ways, but I chose the book definition, which is; Accounting is an information system that provides reports to stakeholders about the economic activities and condition of business. The person in charge of accounting is called the accountant. The accountant is typically required to follow a set of rules and regulations. These rules and regulations are called the General Accepted Accounting Principles. Throughout these next few paragraphs, I will be giving you the history and evolution of accounting, and I will be explaining who the stakeholders are and what type of information they require, and I will be explaining the role of accounting in business. There will be many examples and type of business

Accounting is one of the most important business resources. It helps to organise, gather and manage numerical data of a business. Most businesses are interested in making a profit, therefore, it is vital for a business to control its costs by setting budgets so that this helps to ensure there is a sufficient of cash flow within the business. The role of accounting does not necessary be dealing with money, it could help and produce statistical data to assist decisions making of a business.

Accounting is the language of business. It is a profession that is being guided by principles, concepts, conventions, laws, etc. All these fundamental building blocks serve as common and general compasses to all practitioners of the profession. In some cases, they are nation-wide tailored, while in other cases, they are universally tailored. Accounting as a living, practical, dynamic and realistic profession covers so many areas of social, economic (business), and governmental activities. Surely, any endeavour that involves monetary and material activities create a room for the services of Accounting. Many of the human endeavours for which the accounting profession plays significant (some times inevitable) roles include; Banking, Insurance, Manufacturing, Farming Contracting, Oil and Gas, Mining, Transportation (Air, Land and Sea), Educational Institutions, Churches, Ministries, ICT, Hire Purchase, Local Government Authorities, Estate Businesses, Export and Import Businesses, Bill of Exchange Transactions, Royalties Transactions, Consignment Transactions, Stock Market Transactions, Sports, Entertainment, Hospitals and Hospitality Industry, etc.

Financial accounting: It relates to record maintenance of various financial dealings their arrangement and preparation of financial statements to demonstrate the financial situation of the organization.

Prepare, examine, or analyze accounting records, financial statements, or other financial reports to assess accuracy, completeness, and conformance to reporting and procedural standards. They report to management regarding the finances of establishment. They also establish tables of accounts and assign entries to proper accounts (2011).

Accounting as a technique means that accounting is use as a tool for influencing or altering person, object and activities with the view of changing the world. scholar’s starts to use accounting as a tool for measuring processes, event and activities in financial terms which automatically makes ways in which the activities of people is changed. since accounting have the ability to change activities it is applied to make things seemly real, by fabricating unbiased and neutral records like revenues, liabilities , assets , expenses to figure financial performance and financial place of organization which do not exist of itself, but accounting makes it look like they are independent of themselves. According to Hines social

The sector of accounting that gathers, records, analyzes, and produces a summary of a businesses financial performance from an annual reports or specific period of time. The reports that Financial Accountants typically prepare are balance sheets, income statements, and cash flow statements. Financial Accounting is typically used to share financial performance with external investors and creditors.

Accounting Accounting is the practice of “…maintaining, auditing and processing financial information…” (http://en.wikipedia.org/wiki/Accounting) for the purpose of a company, persons or organisation. There are some fundamental parts of accounting which are; “Identifying, measuring and communicating” (Black, 2000). You need to identify the important financial sections of a company, person or organisation which will include the companies assets, liabilities, capital, income and of course expenditure. You will also need to measure “… monetary values of the key financial components in a way which represents a true and fair view of the organisation” (Black, 2000).