Accounting Essay

1359 words - 6 pages

The development of financial accounting

As we all known, the system of financial accounting is getting more and more perfect because of the emergency of a great amount of the financial transaction . Generally speaking, the developed speriod of accounting can divide three parts:Ancient Accounting, Contemporary Accounting and Morden Accounting. Accounting gets a better growth with the development of the world and science and technology after we step into the 21th century.
Ancient Accounting
About 1000BC,financial accounting had been created . Accounting, as a way to record expenses and receipts,has exsited for a long time . In the ancient time, most of the people can ...view middle of the document...

We can see that the share is balanced at the end of the year instead of every adventure activities . From this , the concept about continuous operation and accounting period appeared.Meanwhile, stock company emerged.
At the same time, there are many events happening all over the world to promote the changing of the capitalism economy.Such as ,the early Bourgeois Revolution(including the British Revolution , French Revolution and American Revolution) and movement of enlightenment originated in France in the second half of the 18th century , which spread the free minds from prejudice , unexamined authority and oppression by church or state.
1.3The British Industrial Revolution
Besides, a great amount of asset through a series of Colonial Expansion activities done by East India Company has been accumulste. It provide a chance to advance The British Revoluton. During this time ,a big amount of production was produced,which leads the concept about depreciation tends to be important.Due to overall scale of the enterprise was expanding and transaction activities is more and more complex ,which makes the information needed about cost of production increasing, and then, cost accounting borned. At the same time, the great amount of capital cause owernership-management separation. If we assume the cost accounting is a new-borned baby,so the Industrial Revolution and stock company is its parents.
1.4South Sea Co Bubble Events
In the past, the main method is accounting keeping and balancing. But now, we need to audit. South Sea Co Bubble Events caused a sensation because of undetailed recording, and it exsited  fraud masquerades seriously.So the curtain of audit is lift.
Morden Accounting
2.1 1929-1933 Economical Crisis
When we step into the 20th ,the era of industrial era of
Industrial Economy was transiting to the Morden Accounting.
At about 1929,the most of developed country broke out
Economy Crisis. Many companies could not pay for the huge debt because they sold shares holded on the securities market.The leader of the government and the public thought the main reason to make the capitalism market desolate even to break down is loosing accounting practice . Thus, most of shareholders required strongly that it is necessary to let accounting report to reflect the true situation of the company clearly. So, 《Securities Acts》was pulished by American government and it draw up a series of the rule of law.
Whatever 《The Securities Act》 or 《The Securities and Exchange Act》,mentioned that it is very important to strengthen the controlling about the accounting information . All of the quoted company had to provide accurate accounting information similarly unified . Under this situation, the Parliament established SEC and require it to formulate consolidate the rules of accounting. Investors who purchase securities and suffer losses have important recovery rights if they can prove that there was incomplete or...

Other Papers Like Accounting

Accounting Essay

1308 words - 6 pages indicating that the auditor’s reviewed the entirety of the financials for all minor and major misstatements which is not accurate. B- “In conformity with accounting principles generally accepted in the United States of America” rather than “are properly stated to represent the true economic conditions.” In the section for managements responsibility over the financial statements it is a requirement that the selected appropriate accounting

Accounting Essay

373 words - 2 pages Accounting -- Recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties needed financial information. Managerial Accounting -- Provides information and analysis to managers inside the organization to assist them in decision making. Public Accountants -- Provide accounting services to individuals or businesses. Auditing -- Reviewing and evaluating the information

Accounting

2566 words - 11 pages Benefits  Retirement benefit plan investments measured at fair value in accordance with IAS 26 Specific quantitative disclosure requirement: Accounting and Reporting by Retirement Benefit Plans  Assets for which recoverable amount is fair value less costs of disposal in accordance with IAS 36. DEFINITION OF FAIR VALUE Fair Value: measurement-date price received to sell and asset, or paid to transfer a liability, in an orderly transaction between

Accounting - 374 words

374 words - 2 pages Farooq Shah Business Accounting 1/14/13 The informative thoughts expressed in FATCA: A new era of financial transparency about privacy, oversea accounts and the new federal income tax laws are ones that I do not agree with. I don’t agree that we as Americans can work hard for our monies only to not have the privacy and courtesy to invest the way we choose wherever we choose. Under the FATCA act it requires all foreign financial

Accounting - 908 words

908 words - 4 pages amount? Answer: No. 30.What is the par or stated value of each of your company’s stocks? Answer: Common Stock : No par Value Footnote Disclosures: 31.How many footnote disclosures does your company have? Answer: Footnote Disclosure 32.How many significant accounting policies are listed under its Summary of Significant Accounting Policies? Answer: 16 33.What does it include as Cash and Cash Equivalents? Answer: Cash and Cash Equivalents

Accounting - 1742 words

1742 words - 7 pages ACCT 601– Managerial Accounting Investigating Cost Drivers Part A – Instructions The object of this exercise to gain a better understanding of overhead costs through the use of regression analysis. In particular, you will investigate which service department activities appear to drive or cause departmental overhead. The data you will use is from a proprietary database which contains detailed departmental (i.e. USED, NEW CAR, SERVICE

Accounting - 1555 words

1555 words - 7 pages accounting system keeps an up-to-date record of both ending inventory and cost of goods sold at any point in time. Periodic Inventory System Records the cost of purchases as they occur (in an account separate from the inventory account), takes a physical count of inventory at the end of the period (periodically), and applies the cost of goods sold model to determine the balances of ending inventory and cost of goods sold. Inventory Cost Flow

Accounting - 698 words

698 words - 3 pages their older competitors had no way to win over them. They believe in their intelligence and creativity. What’s more, they ignored any criticism from financial analysts since they thought that those criticisms are just from envy. On Jan. 15th, 2002, an employee called Sherron Watkins questioned Enron’s financial accounting. However, the CEO, Ken Lay never paid attention and took action on these questions.

Accounting - 1668 words

1668 words - 7 pages the reduction over and above the previous revaluation increment. The amount of $300,000 would be a reduction in revaluation surplus that is recorded as other comprehensive income. B. The manager claims, “There should be no adjustment for the decline in fair value because the recoverable amount of each parcel of land exceeds $2 000 000 at 30 June 2014”. Explain whether this is consistent with accounting standards. If a revaluation results in an

Accounting Education

306 words - 2 pages Accounting Education In the business world, accounting education is one discipline of study that all people, regardless of job position, should have some knowledge of. Its concepts can be applied to all job specialties, its importance has been promoted in recent years, and it is useful in people's everyday lives Barber, (2000). First, accounting education is important because it can be applied in all job specialties. Secretaries must use

Accounting Class

340 words - 2 pages Three Topics: - Generally Accepted Accounting Principles -The Accounting Eqaution -The Rule of Debit and Credit Advantages of applying accounting principles, rules, and procedures: * A properly prepared financial statement communicates the profits to shareholders and employees * An investor will be more apt to consider a company whose financial statements disclose all activities * A standard format for financial statements can be

Related Essays

Accounting Essay 9328 Words

9328 words - 38 pages ISSUES IN ACCOUNTING EDUCATION Vol. 22, No. 4 November 2007 pp. 685–708 China Eastern Airlines: People’s Republic of China Accounting Standards, International Financial Reporting Standards, or U.S. Generally Accepted Accounting Principles? John L. Haverty ABSTRACT: China Eastern Airlines, headquartered in the People’s Republic of China, has been listed and traded on the New York Stock Exchange since 1997. In its 2005 annual report, China

Accounting Essay 614 Words

614 words - 3 pages ADJUSTING ENTRIES BY MELANIE.KELLY7 ACCOUNTING In accounting there is many different things that you need to know, the one that we are going to go over today is adjusting entries. Adjusting entries are to ensure that revenue and expenses are properly recorded under accrual basis. Adjusting journal entries are made in the general ledger to record revenues that have not been

Accounting Essay 7464 Words

7464 words - 30 pages far and wide; they are commonplace throughout the business and accounting frontiers. Accounting for leases, however, is not so clear cut. Since there are various ways to account for leases, many companies pick and choose which they feel best suits their situation, even when this sweeps dirt under the rug along 3 the way. The financial procedures for dealing with leases should entail benefits as well as limitations to ensure each company is

Accounting Essay 338 Words

338 words - 2 pages September 21, 2014 AC 113-02 Accounting for Non=Accounting numbers Unit 8 Straight-line Method/Double Declining Method 1. The straight line method: ($300,000 – $0)/ 5= $60,000 The double declining method: (100%/5) = 20% 20%X2=40% $300,000X40%= $120,000 2. According to (Warren 2012) Straight line method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset