The Importance Of Acquiring Accounting Information Is Necessary For A Business Essay

The Retained Earnings Statement provides users the net income retained in the business for a specific time period. It shows the amount and cause of changes during a reporting period while simultaneously allowing users to evaluate dividend payment. External users mainly use this because they evaluate the dividend payout.

ORL adapts a flexible business model depending on changes of the market. In general, ORL’s strategy is to provide worldwide luxury brands and it focuses on channel of distribution, extension of Asian market and licensed brand.

Austin Watches is a start-up watch producer and distribution company. Its strategy is to serve the upscale niche markets of the watch industry. It will capitalize on the German engineering and manufacturing used to build the watches. There are many untapped potential markets within this industry that desire high-quality, stylish goods, but do not think they can afford them or do not know where to purchase them.

Statement of Cash Flows is the amount of cash being received and spent by a business during a defined period of time, sometimes tied to a specific project. The Cash Flow is often used to know the status or

The Public Company Accounting Oversight Board (PCAOB) inspections that were conducted in 2003 were conducted on a few dozen fairly large accounting firms. The Public Company Accounting Oversight Board (PCAOB) initially held inspections for a limited number of large accounting firms. Today the PCAOB has conducted full-scale inspections on large accounting firms, mid-size and smaller accounting firms. The PCAOB expanded its growth in 2005 to 300 full-time employees and seven regional offices across the country. This expansion also included an increase in its budget from

     The nature of work of accountants and auditors is to prepare, analyze, and verify financial reports and taxes, and monitor information systems that furnish this information to managers in business, industry, and government. The major fields of accounting are Public accountants who have their own business or work for public accounting firms. They perform a large range of responsibilities such as doing taxes, numerous accounting and auditing, consulting activities for their clients, who may be corporations, governments, nonprofit organizations, or individuals. Management accountants also called industrial, corporate, or private accountants record and analyze the financial information of the companies

Partnership is a type of business organisation in which two or more individuals work in a business. Investment, profits and loss and other resources are equally shared according to the terms and conditions of the partnership agreement. In absence of such agreement, a partnership business is most likely to be a failure. Participants in an enterprise agree to share the associated risks and rewards equally. The Partnership Act 1890 explains that a partnership is the relation which exists between people carrying on a business as usual with an aim of gaining profit. (Alan Griffiths & Stuart Wall, 2008, p133 ) states that "This is a form of business relationship which is usually entered into by individuals who wish to take advantage of the combined

Partnerships are symbiotic relationships that require each partner to act in good faith as they ‘owe a fiduciary duty to one another’ and must places the needs of their partner below their own. The advantages of a partnership are based entirely on the partner’s relationship. There is a shared cost for starting and maintain the business, as well as shared time and effort in running it. There is also the advantage of having shared liability, however this can also be a disadvantage if your partner abandons you, as you are also liable for their debts. Another disadvantage is that of shared decisions, whilst most partnerships are of joint minded individuals, there are some issues that would have to be resolved by vote, and a partnership stops you from making sole

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).

growth is expected over the next ten years. Salary and status, increase with time and

Partnership - he can be in partnership with 2 or dozen partners will be controlled and manage by the partners. This type of venture requires contract and it will govern by Term of the Partnership Act 1890. Each partner has a shared responsibility and each partner bringing in a speciality. It is easy to set up the burden of risk is a share among partners. The downside of partnership is that, there is a potential risk of conflict and partnership dissolved on death of a partner. All partners liable for the debts of the others and unlimited Liability.

The second form of business is a partnership business. A partnership meaning is the relationship between two or more people who pair up and run a business. Each person who claims ownership in the business feels the effects in gains and losses. For example, when one of the owners gains in profit or even loses profit, the other partner will gain or lose just as much as his or her partner. There are three different types of partnership businesses, which are general partnerships, limited partnerships, and joint ventures.

Despite the great stride in efforts made by the financial industry in the last twenty years, many still view management accountants as they were in the 1980s; the ‘scorekeeper’, the ‘corporate cop’, sitting in their cubicles running numbers from dusk to dawn. However, in the modern era accountants have started taking on new roles in corporations, becoming strategic planners and, in many cases, business partners. This is greatly due to the continuingly changing environment of the business world and how accountants are being asked to take on further responsibilities to handle the new challenges and competition

The second legal form of business is a partnership. This form of business combines the partners financial and skill resources. On the down side, it requires a partnership agreement and the partners may not always agree on important business topics. The partners are still personally liable for all debt and legal actions. This form of business could answer the skill set issues needed to start the firm. It could also allow for a low startup cost do to the partners polling their money. (Holland, 1998, para. 3)

The Purpose of Financial Statements The financial statements of a business are used to provide information about the status of the business, set performance targets and impose restrictions on the managers of the firm as well as provide an easier method for financial planning. The financial statements consist of the Profit and Loss Account, Balance Sheet and the Cash Flow Statement. There are four areas of information, which we can collect from a company's financial statements. They are: Ÿ