Financial Accounting And Reporting Of An Organization

1984 Words Feb 14th, 2016 8 Pages
Financial Accounting and Reporting course work 1

Title: Financial accounting and reporting
Student Name: Mengting KE
CEG Number: MK24366
Supervisor Name: Nilam Sultan
Date of submission: 14/02/2016
Total word count: 2042
Introduction

According to Black (2009: 2), accounting can be defined simply as the recording, summarizing and interpretation of financial information. A more detailed definition is that offered by the American Accounting Association (1966), as follows: ’The process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information’. This means that, in terms of identifying, this should focus on the key financial segment of an organization, like liabilities, assets and capital. Measuring, on the other hand, refers to the budget of the company and it shows a true and fair view of the organization. Next, communicating refers to the financial information which is transmitted to the people who need this information.
In other words, accounting is the language of business which can help stakeholders well understanding the business and make the correct decision. Also, the purpose of financial accounting is to provide useful information to others to show the value of a company or business. Financial accounting aims to give information that others can use so that they can understand what the company is valued at.

Financial Statement

There are three financial statements in…
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