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Investors and creditors rely on financial statements when making decisions on allocating capital. If a company has a poor ethical track record when reporting financial results, investors will take their money elsewhere. This can be observed when a company's stock plunges after news of accounting errors or manipulation. Ethical accounting is foundational to an efficient capital market and lowers a firm's cost of capital.
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Why has ethics become so important in business?
Ethics has become so important in business for various reasons. This is what is being used to enhance professionalism and define the code of conduct in business.
What are the disadvantages of accounting information system?
To many companies rely on accounting information systems because they are so prevalent. If the system fails, the business would be at a loss for information.
What is cash basis accounting?
Cash basis accounting is the method of tracking finances at the time that cash is exchanged. So, when a customer pays you cash, you would record the transaction; when you pay for your expenses with cash, you would record the transaction. Cash basis differs from ACCRUAL BASIS accounting, which tracks the funds based on when the transaction created a debt. So, in accrual accounting, you would record a transaction when you issue an invoice (requiring payment) because ACCRUAL accounting recognises this invoice as an asset, even though it has not yet been realised. Similarly, when you receive a bill from a client or utility, that bill (in accrual accounting) is recorded as a debt, even though it has not yet been paid. So CASH ACCOUNTING and ACCRUAL ACCOUNTING differ in the TIMING of the record of when the transaction is paid - at time of exchange of cash/funds or at time of notice of requirement to pay. - Xavier
Which application software packages are the most important for a business?
The financial transactions are most important for any business and so to have good control over finance, one must know the financial standing of the company, namely, income, expenditure, surplus generated, cash on hand and in bank, amount payable to creditors, amount receivable from debtors etc, ON DAY-TO-DAY BASIS the business must have an accounting package like TALLY ACCOUNTING PACKAGE
What is the relationship between accounting and mathematics?
accounting is general mathematics which improve your calculations and makes you a expert in mathematicx. So to be perfect in mathematics you have to make your account best than your mathematics.
Why is professional ethics important?
professionalism deals with trust. so, professional ethics is important to do better.
Why has ethics become so important in business?
Ethics has become so important in business for various reasons. This is what is being used to enhance professionalism and define the code of conduct in business.
Why are ethics important?
Ethics are important because without ethics people would not have ideas of right and wrong. Ethics help to make the society more stable. ethics help to choose right actions over wrong one. Ethics is very important since it is an essential part of the basic civilized society, so the society with lack of ethics will fail sooner or later.
Who developed the Ten Commandments of Computer Ethics?
Ethics in information processing is considered so important that the Computer Ethics Institute developed the following Ten Commandments of Computer Ethics.
How important are ethics in a legal environment?
They are very important.As a legal practitioner you have to have excellent ethics so that you do not compromise your ethical beliefs.
Why international business ethics are important?
so u can be gay so u can be gay
Why do you need to study computer ethics?
Since information technology personnel can have a significant impact (both positive and negative) on a business, it is important to be able to trust IT personnel to do the right thing. Ethics is a field which helps define what is the right thing to do. See related links for an article which goes into some details about ethics and information technology.
Why business ethics is so important?
Business ethics are important because managers want customers to purchase their products. When customers think businesses aren't ethical, they tend to avoid purchasing from them.
Why is math so important in accounting?
It's important because u need to know how to count money
Why ethics are important in the work place?
Ethics are a kind of unwritten rules of conduct. It is important to have good work ethics not just for your clientele, but also for your employees. Your work ethics purvey a certain amount of professionalism that says your business means to be efficient and successful. I think it's important to have a good balance though. Having too much professionalism loses some of the personal aspects that can be just as important.
What is the plural of ethics?
"Ethics" is uncountable and so has no plural.
What is importance of ethics in engineering?
because it teaches us the codes an engineer has to follow so that we can prevent tragedies.
