Accounting

Accounting is term use for record keeping and data management to make financial statements.

Accounting-Overwiew of Accounting

Accounting is called the language of business.Accounting is the field of study and also the part of each and every business.Accounting gernelly means record keeping.It is the broadest concept used in todays world and it is usually used for record keeping

.Business operations and different procedures are recorded in accounting field than this information is communicating to stockholders as well as to the stake holders.There are different types od statements in accounting through which information can be communicated like balance sheet,income statement,statement of costs of goods sold and so on.These information is necessary for decision making made by managers ,employees and stockholders.

Accounting-As a Profession Accounting is the broader term and a wide phenomena.It can not be explained easily in one article or paragraph.Accounting can be adopted as a career or as a profession.It is the course of study and lot of researches has been done on this topic.

Public company accounting board has been established in the result of act.(PCAOB).The purpose of this board is to enforce accounting principles and practices.To adopt accounting as a profession is a wise decision in todays world.Investors ,Bankers,money managers all are involve in this profession.Accounting industry is now moving to improve its own business.As bubble economy has come so accounting is become a necessary step for all businesses and firms.

Accounting-Management accounting& Decision making

Accounting is used for the decision making purpose also.There are two users of financail statements that are internal users and external users.Managemant accounting deals with people inside the organization including employees, managers and so on.

While financail accounting deals with the people outside the organization including customers, investors and gernel public.So both of these fields of accounting are important for report generation.As these reports are used by people and public for decision making as wel as by decision makers who take big decisions for the firm.Like an investor must know whether to invest in that firm or not to invest.That is the critical decision for the benefit and growth of the firm.

Accounting-Cash VS Accural Basis of Accounting

There are mainly two methods used in accounting.First is the cash basis of accounting and second is accural basis of acounting.These two systems are used in three types of enviroment.First for calculating taxes.Second for calculating public debt.Third they are used in the field or area of economics.

According to the rule tax payer have to use single method of accounting in one year.if he frequently switch from one method to another than it will make a lot of problems for him in managing the reports and statements.Cash basis of accounting is that in which cash is recorded when you receive cash from the customer and when payment is made to the supplies.while Accural basis of accounting is that in which you record the entery when transactions is occurred not when you receive cash or paid it.

Accounting-Overview of Financail Statements

Accounting deals with data, facts and figures.These all are used for record keeping and making of financail reports.These reports are used by stockholders,employees and customers and so on.There are three types of financail reports.i.e balance sheet,income statement,satatement of cashflow and statement of owner equity.

However these statements are used by different users and for different purposes.However these statements are interrelated with one another.Balance sheet in other words is called snapshot of the business.Its giving the complete information about the business to which this statement is belong.Income statement shows about the revenue and costs of the business.Cashflow statement tells about the cash inflow and cash outflow of the business.Statement of owner equity show about the equity and assets position in the company.

Accounting- Overview on Principles of Accounting.

Accounting is something related with record keeping.It is the subject of practice not the subject to only learn it.There is certain body of principles on which this subject is being based.We can say that this field is based on these principles or these principles are the pillars of accounting

.These are called GAAP which means gernelly accepted accounting principles.They are matching principle,realization principle,business entity principle ,going concern principle and so on.Like in matching principle you see how the revenue of the business is mactched with the cost it states that revenue and cost must be match at the time they occur.Realiztion principle states that do the entry for the same period when revenues are cllected or cost are inccured.so there are different priciples on which this subject is based.

Accounting-Accounting & Accounting Scandals

Accounting is the term used for record keeping and financail reporting.The reporting that is done to internal organization as well as for external to organization.Financail accounting is much more structured then from managerial accounting.

There are number of cases of financail frauds have come up on the screen in the year 2001.The most big fraud that is done is of Eron Company.These problems are arise due to relax accounting standards and procedures.Some firms do manipulation in the figures to show that firm is running in the good position and to show that firm earning good profit.Some firm manipulate it to keep their self from paying taxes to the government.The all problems are due to accounting standards,auditing procedures and so on.

Accounting-History of Accounting

Accounting is thousands years of old in its age.It has been emerged from Mesopotamia.Peoples of old times relied on the accounting old and traditional methods.But now a days we observe very exclusive and rapid change in accounting field.It is usually based on three areas accounting,bookkeeping and auditing.

The accounting is further divided into many types like financail accounting and managerial accounting.Financail accounting is mainly related to financail reports and financail information.While managerial accounting is all about information that is being used by managers on internal operations of the business.There is also the double entery book keeping system in the sccounting in advanced techniques that has been emerged frim Italy in 14^th century.