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Accounting is basically a service function that embraces the formal design, installation, and operation of a system of accounts in order that business transactionsmaybe properly recorded and reported. It is usually called the language of business, and an "aid to management".
It is therefore clear that Accounting is a NECESSITY in all kinds of business specially big companies, whether a single owner or a corporation. ( non-profit or profit ) Even a family, father, mother and older children needs accounting to check their incomes and expenses.
Who needs accounting information, mainly the financial statements ( The Balance Sheet or Statement of Condition, and the Income Statement or Statement of Operation ) to safeguard their interests? We have the 1. Management, 2. Creditors, actual and prospective, 3. Investors, actual and prospective, 4. Stockholders, 5. Empoyees, unions, 6. Regulatory and taxing authorities, etc. The reasons are self explanatory.
Auditing is actually a part of Accounting. It is a specialized area that deals with the examination and review of the accounting records mainly, to find out the effectiveness of the accounting internal control systems and procedures and also, management policies and practices. In short not only finding errors and fraud, but to effectively assist management to avoid or reduce such occurrences. We have internal auditors (co. employees ) and external auditors ( generally CPA's ) with the objective of forming an independent opinion as to the fairness, and consistency of the Statements of operation and condition of the company.
Based on above informations, we can therefore conclude that Accounting, with Auditing systems is necessary in business and guides management in the effective implementation of its policies and procedures for the success of the company.
What else can I help you with?
What is one possible reason quantity demanded is different for the two products?
One possible reason the quantity demanded differs for two products could be their price elasticity of demand. If one product is a necessity with few substitutes, a change in price will result in a smaller change in quantity demanded compared to a luxury item or a product with many alternatives, where demand is more sensitive to price changes. Additionally, consumer preferences, income levels, and market trends can significantly influence how much of each product is demanded.
What is the main reason that northern industrial favored a tariff?
Tariff revenues fell disproportionately on the South, accounting for 87% of total, thus protecting Northern industrial interests.
What is the monetary unit assumption?
"The monetary unit assumption requires that companies include in the accounting records only transactions data that can be expressed in terms of money. This assumption enables accounting to quantify (measure) economic events. The monetary unit assumption is vital to applying the cost principle. This assumption prevents the inclusion of some relevant information in the accounting records. For example, the health of the owner, the quality of service, and the morale of employees are not included. The reason: Companies cannot quantify this information in terms of money. Though this information is important, only events that can be measured in money are recorded." Source: "Accounting Principles" Wiley. 8th edition. Weygant; Kieso; Kimmel.
What were the Reason for the fall of Enron corporation?
The fall of Enron Corporation was primarily due to widespread accounting fraud and unethical business practices, including the use of complex financial structures to hide debt and inflate profits. Executives engaged in deceptive practices to mislead investors and analysts, ultimately leading to a loss of confidence in the company's financial health. The scandal was exacerbated by the complicity of accounting firm Arthur Andersen, which failed to uphold ethical standards. The resulting bankruptcy in 2001 not only devastated employees and investors but also led to significant regulatory reforms in corporate governance and accounting practices.
Is opportunity the reason behind success?
Opportunity does not reason it knocks. The reason behind success is that it sure beats failure.
Is accounting is a necessity while auditing is a luxury for a business enterprise?
accountancy is necessity. it may be treated as a necessity because of the following reason. it helps us to know if the firm is suffering from loss or profit, any small firm can get take the help of a person having knowledge of accountancy and does not have to pay large amount it helps us to know the real position of the business auditing as luxury whereas to get our accounts audited we have to pay good amount of money to auditor . only those firm whose transaction are in large amount can bear the cost of auditing it is also a waste of time for small business because it involves at alot of time more over employees efficiency are decreased because even for small things they are called and questioned about those things azmat(9852419025)
What is the necessity of banning the gun?
There is no reason or necessity to ban firearms.
How do you calculate luxury tax?
sale package 10000 so what amount we will calculate in luxury tax & what is the reason
Why does investigation begin where auditing ends?
Because if the audit has found an irregularity, then the reason for and source of this irregularity must be discovered and discovery requires an investigation.
What companies have been accused of accounting fraud?
Companies that have been accused of accounting fraud include General Electric and Hospital Chain. Both companies were very suspicious, which is the reason why they've been accused of accounting fraud.
The reasons for keeping accounting record?
for a-level accounting . why stakeholders(customers) use the accounting records for guarantees and order met??? the reason for keeping accounting records because human memmory is short and changable, so there is chances of contravercies in future that's why account bookss are keeping
What does right of audience mean in a court?
It means that if you have a legal reason/necessity to appear in court you are guaranteed that, right and the right to be heard.
What is difference between accounting concept and accounting principles and convention?
Accounting concepts are essentially theories. Accounting principles are measures and processes that have proven to be successful when used. Conventions are beliefs within the discipline that help make things efficient.
What is an alternative word for essential part of?
core, heart, gist, necessity, purpose, aim, end, reason, 'sine qua non'
Two primary qualities that make accounting information useful for decision making are?
One quality that makes accounting good for decision making is the fact that it is reliable. Another reason accounting is good for decision making is the fact that the numbers have to be consistent, so it is easy to interpret.
Why do some French people ride bikes?
Same reason someone of any nationality would ride a bike, for fun, for exercise, for necessity.
What is accounting misconduct?
Accounting misconduct is a phrase used to describe when someone purposely messes up the books within a business. The usual reason for this is so the person can gain access to money for their own personal use.
