Introduction
1. definition of accounting: [2]
*"Accounting is a set of principles and procedures relating to the registration and compilation, analysis and interpretation of financial data for the purpose of determining the outcome of business and its financial position".
* "A method of recording and tabulating and summarizing operations and financial events and then interpret the results".
*Body:
2.Assumptions used in accounting: [1]
What assumptions used in accounting is generally predict solutions through experimentation of phenomena to upgrade them to the level of reality through the use of a combination of induction and deduction, and when the results to an acceptable degree of accuracy, it can be considered the evidentiary obligation accepted and valid, and perhaps the most important accounting hypotheses are:
I. The imposition of a legal person:
This assumption is based on the understanding that any accounting module is independent and separate from the owners of the project. This assumption leads to the financial statements prepared for the accounting unit for the unit and is not related to operations relating to owners ' accountability for the assumption of independence of economic unity of the personality of the owners making financial statements that the Unit prepared for the operations unit and special operations are not shareholders or staff, in this sense, different accounting statements prepared by the accountants are considered from the point of view of the accounting unit and accounting unit.
II. a hold:
Under this assumption the composition of any accounting module is to continue its activity indefinitely until the final liquidation. This is essential to justify imposing rules of accoun...
... middle of paper ...
...it to determine income accounting period.
*Conclusion
As explained above, the accounting science as the rest of the social sciences and Humanities founded, principles and assumptions because of accounting theory cannot reach the effect without a unified subject fundamentals of this science in all countries of the world, hence we have to address the accounting principles and assumptions that underlie accounting in order to put the reader in the perception of accounting and its principles. [1]
*References
[1] Dr. Walid Naji alhayaly, accounting ballistic "problems of measurement and accounting disclosure", a nostalgic House Publishing ,first edition, Oman, 1996, p. 27. http://hassanaccountant.blogspot.ae/2009/04/blog-post_8498.html. May. 17, 2014
[2] Abu Abdul-Aziz. Accounting, October.25, 2005. http://bahaj.ahlamontada.com/t476-topic. May. 17, 2014
Management accounting in organisation is very important for decision-making and to make the business more efficient and therefore increasing its profits. Is the process of preparing accounts that can help managers to make day-to-day and short-term decisions, by providing them with accurate and timely key financial and statistical information...
Accounting is “a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information” (Accounting, n.d.). Financial information mentioned above includes any financial transactions done by the business. There are two types of accounting. The first one is accrual accounting, which realizes transactions at the time they occur and disregards whether or not cash transaction has occurred. This method is widely used in business, because it allows transactions to be completed over time and distance. Financial statements produced by accrual accounting reflect a sophisticated trade and a much more accurate snapshot of the business’ current situation. The opposite of accrual accounting is cash accounting, in which transactions are realized only when cash payment is made or received. This is the method used in personal finance.
Hines, R. D. (1991). The FASB’s conceptual framework, financial accounting and the maintenance of the social world. Accounting organizations and society, 16(4), 313-331.
Marshall, M.H., McManus, W.W., Viele, V.F. (2003). Accounting: What the Numbers Mean. 6th ed. New York: McGraw-Hill Companies.
To understand the basics of accounting a person needs to understand the steps involved. Each step is necessary in order to provide complete and accurate financial stat...
The nature of business has changed and evaluation. ‘New techniques have been developed and existing one has adapted to try to ensure that management accounting retains its relevance’ (Atrill, P. el at 2013, pg. 12). Then, what is management accounting? ‘The application of professional skills in the preparation and presentation of accounting information in such a way as to assist management in the formulation of policies and in the planning and control of the operations of the undertaking’ (Tyagi, C. el at 2003, pg.12). The management accounting is very significant thing in the operation which this might consider as tools that allows administrators to manage their enterprise, make internal stakeholder understand more and cooperate
According to Marshall, McManus and Viele (2004), accounting is “the process of identification, measurement, communication of information about a business for the purpose of making decisions and informed judgment” (p.3). Decision makers look at balance sheets, income statements, changes in the owner’s equity and cash flow statement as documentation of the viability of an entity. Misrepresentation of the financial statements can place doubt of profitability in any company. The need for accountability and regulation of accounting practices is important in preserving trust in the business community.
Financial and Managerial accounting are used for making sound financial decisions about an organization. They provide information of past quantitative financial activities and are useful in making future economic decisions. (Albrecht, Stice, Stice, & Skousen, 2002) The same financial data is used to derive reports for each accounting process yet they differ in some ways. Financial accounting primarily provides external reports for external users such as stock holders, creditors, regulating authority and others. (Garrison, Noreen, & Brewer, 2010) On the other hand Managerial accounting is concern with providing information that deals with the internal viability of the organization and is tailored to meet the needs of an individual organization. (Albrecht, Stice, Stice, & Skousen, 2002)
Financial Accounting Standards Board. (2006, July 6). Conceptual Framework for Financial Reporting. Financial Accounting Series , 1-55.
Accounting has been a living part of history since the Neolithic period and remains a prevalent and ever-evolving profession still to this day. This essay therefore proposes to look at the significance and role of history specifically related to the accountancy field. In order to substantiate this claim of the importance of accounting history, numerous benefits of accounting history will be presented. Factors such as the use of historical research and its availability thereof to constantly develop accounting policies will be discussed as well as how historical accounting practices can be used to understand current practice and assist in the training of individuals in the accounting field. Lastly, the importance of history in the development
Accounting dates back as far as first centuries, is the language of business. As everything has gone through many changes, accounting has also changed many times through out the centuries. It went from the use of abacus to the most advanced softwares, and computers. With these drastic improvements nowadays accounting, financial accounting and management are facing big challenges. From the presentation of the reports to communication to the users, investors, and owners, the accounting field has gained totally a new shape from two decades ago. Today with the dynamic change in every aspect of life, the accounting field has to act fast and be able to adapt these new changes and challenges in order to survive.
The Financial Accounting Standards Boards (FASB) defined conceptual framework as a consistent of underlying concepts and the ideas that describe the nature and general purpose of financial reporting which may lead to consistent standard in accounting (Deegan 2010). The role of the conceptual framework is to ensure that financial statements in accounting are free from bias and to provide useful information that is useful for user’s decision making. The standard-setting board also formulated a range of perceptions and theories related to accounting to trigger the objectives of financial reporting. The standard-setting board keeps issuing the conceptual framework over time to ensure that the conceptual framework’s objectives are improving to provide useful financial information. The innovative work on conceptual framework was embraced in the United States by the FASB in the early 1970s. The FASB accomplished disappointment in attempting to generate a standard that at the outset might not appear to present, especially testing theoretical issues. Regardless, while attempting to achieve concession on Statement of Financial Accounting Standard, tending to the theoretical issues produced critical matter for the board members. In this manner, throughout the outset the FASB understood the requirement for an obvious conceptual framework. Based on Hines’s argument, the conceptual framework is mean to provide the ability to increase self-regulate of a profession in order to neutralizing government interference from arising. Whether this argument has been accepted or not will be discussed in more detail with supported evidence to clarify the main point about Hines’s argument. Further details about this argument will discuss below.
One theory that is used in accounting is that of Conservatism. This notion states that all liabilities should be accounted for even if there is a possibility that they will never take place. This same principle applies to liabilities but not to revenues. The only revenues that can be accounted for are the ones that have already taken place. Any liability that might happen should be recorded and at the higher possible amount. For instance, if a company is sued for any reason and the legal department determines that the possible liability to pay claims will be somew...
Accounting is a vital element of business. It records the way a business has grown and, after analyzing figures, suggests the way it should go in the future. Furtunes are gambled on the advice of accountants.
The success of a company is very dependent upon its financial accounting. In accounting there are numerous Regulatory bodies that govern the accounting world. These companies are extremely important to a company because they set the standards when it comes to the language and decision making of a company. These regulatory bodies can be structured as agencies, associations, commissions, and boards. Without companies like the Security and Exchange Commission (SEC), The Financial Accounting Standards Board (FASB), the Governmental Accounting Standards Board (GASB), Internal Accounting Standards Board (IASB), Internal Revenue Service (IRS), and other regulatory bodies a company could not make well informed decisions. In this paper the author will look at only four of them.