This website uses cookies to ensure you have the best experience. Learn more

The Role Of Accounting On Business And Our Society

1261 words - 6 pages

The Role of Accounting on Business and Our Society
Angel Ramos
Professor Darlene Green-Connor
ACC 100: Accounting I
March 2, 2014

The Role of Accounting on Business and Our Society

There are many decisions that companies make every day in order to be in business as well as to ensure it continues to stay in business. If in retail, such examples would be to extend its inventory or cut back on an item, place certain product on sale or on clearance, or even if it would be better to relocate or sell the company. Before making any of these decisions, management and the decision makers need to know how the company is doing. There are valuable key point indicators that can help in the ...view middle of the document...

This statement reports what actions are being taken as far as investments and withdrawals. It displays the Owner’s Capital for that specified time period and answers why it has increased or decreased.
Balance Sheet
Unlike the other statements, the Balance Sheet is captured at any period in time instead of time. It shows how the company is doing at this precise moment. It shows the assets along with its liabilities. It shows how much it has made as well as how much it takes to continue to operate and its debts. It answers the where they are now in the overall economic position.
Statement of Cash Flows
As it is clearly titled, the Statement of Cash Flows shows the direction in which the cash value of the company is going. It shows what is being bought, how much was made and what is being paid during a specified period of time.
Out of all four statements, the Income Statement is the most effective in communicating the financial health of an organization. It provides the view from the economic standpoint of being able to remain in business and in competition. The other sections have components that are influenced by the decision makers such as its investments made during the time period or withdrawals taken. The Income Statement shows the true assessment of the company in its operational value and net worth.
Learning the value of these reports and how to interpret them let alone keep them is one of extreme importance to a company. Not all executives can put a financial statement together although they should all know how to interpret it. This is the importance of hiring an accounting profession.
Some companies hold positions for accounting as well as hire certified public accountants. The accounting positions within the firm do not usually have to hold any certification or degree level of education to hold their station. Their main focus of employment may be in the capturing of the reporting information, bookkeeping or simple tax-related matters. Certified Public Accountants (CPA) attends additional training and certifications before being able to receive the designation of a CPA. They hold more complex duties such as forensic accounting, audits and international tax management. These roles and positions are vitally important in our economy from a society and global perspective. They maintain the integrity of the business acumen as well as maintain its confidence on the reported results to its shareholders. They may even grow further in their counseling roles as trusted advisors. “Promote the CPA as the trusted advisor who, in addition to providing core CPA services, develops solution to complex problems by integrating knowledge, expertise and resources from multiple disciplines” (Hartstein, p36).
It takes a lot of decision making and analysis to ensure a business prospers. Forming and understanding financial statements are very important if not vital in those assessments. If I were to...

Other Papers Like The Role Of Accounting On Business And Our Society

The Effects Of Technology On Accounting Professionals

490 words - 2 pages higher supply cost, resources , maintain the technology edge and hiring qualified professionals . However, this can be offset by the increase number of satisfied customer online as well as walk-ins. Also by having all customres register promotion, advertisement campaigns and references would Satisfied customers will help make Lynn’s Clean & Press a leader in the laundry business. For smooth running of the operations Lynn’s Clean &amp

Business, Government, And Society Essay

2316 words - 10 pages on one’s ideology and this makes the appreciation of the phrase even more complex. Therefore, an accurate understanding of the relationship that exists between the three requires an examination of the three main theories of political economy – the free market economy, socialism and mixed economy. Business, government, and society interact and influence each others' specific objectives and goals. Business, Government, and Society Business

Role Of Education In Society

693 words - 3 pages the bourgeoisie. The New Right criticises the skills and knowledge taught in schools and believes that they teach things irrelevant to the world of work. To conclude, the functionalist theory focuses on the ways that universal education serves the needs of society. Functionalists first see education in its manifest role: conveying basic knowledge and skills to the next generation. By Jordan Odolomerun

Assess The Contribution Of Feminist Perspectives To Our Understanding Of Society

912 words - 4 pages Assess the contribution of feminist perspectives to our understanding of society. (33 marks) Feminism is a set of ideologies used to advance the cause of women’s equality and to end the sexist theory and practice of social oppression. It is a structuralist theory which is made up of several versions, but they all argue that society is patriarchal. The types of feminism I will be reviewing are liberal feminism, radical feminism, marxist

The Functionalist View On The Role Of Education

1302 words - 6 pages outlooks on the role of education as they both believe that it prepares us for later life and the workforce. However, some sociologist would argue that Durkheim is wrong because we all have different cultures and histories so therefore, history doesn’t bind us together because the education system is ethnocentric and also we’re not bonded together because we’re segregated by classes due to capitalism. Moreover, because of capitalism in society we do

Role Of Education To Overcome The Problem Of Gender Discrimination In Pakistani Society

2064 words - 9 pages relevant to our society and the data available is vague and not much helpful. The researchers have to focus on different aspects of society as well in detail. The development need in this research area to find opportunities like aspect of tea and political socialization (where major issues of the economy have discussed in lighter mode), television advertisements of Tea that showed our family values and emotions (rishta scenes which have greater

The Role And Functions Of Law

911 words - 4 pages , employees were required to be trained in all aspects of OSHA safety requirements, and the company was subject to inspections and audits from authorized OSHA agents. Although all members of society will rarely agree on the fairness of certain laws, organized society will not exist without a written set of rules to govern both human behavior and business transactions. The role of law is to promote social order and justice, constitutional civil

The Role And Function Of Law

734 words - 3 pages Role and Function of Law Understanding the role and function that law plays in business and society is a large undertaking. There are many facets that help define, shape and regulate the current commercial and social environment. Focusing on key objectives and a general intent, the landscape can be less daunting. Fundamentally, law establishes a common protection of interest and uniformity in which individuals, society and businesses can

Stereotyping And Profiling – The Negative Effect On Society

3096 words - 13 pages to judge people or groups that we do not fully understand. The ability to move presumptuous as a society is hinged on understanding one another and breaking down societal hurdles. We must realize that the lessons that life may teach us, may be right in front of us and we need to step back and rationalize our actions. Whether a person is White, Black, Indian, Asian, Hispanic, or Arab, the realization must be that we, as humans, all bleed red, we

Of Mice And Men Is As Much A Commentary On The Lives Of Migrant Workers And The Society Of The Time As It Is About Lennie And George

841 words - 4 pages citizens to pursue their goals in life through hard work and bravery, this was seen to be the main factor that motivated most of the migrant workers to continue to find jobs and later on fulfil their own dream and live a happier life. In the book ‘Of Mice and Men’ Steinbeck has made the ranch a micro representation of the society of the time because it contains all the elements of society. George and Lennie’s only hope was to move around the

Judgement On How Business And Cultural Environments Shape The Behaviour Of A Selected Organisation

2103 words - 9 pages different times of the day, yet automatic monitoring of our work rate cannot make allowances for those variations. Think about each of the four influences in turn. a)    Many supermarkets automatically re-order goods on the basis of records of sales at the check-outs. How may the four influences affect the work of a store manager in a supermarket? b)    Which of the influences relate to your own work, the work of people in your team, and the work

Related Essays

The Role Of Accounting To Business And Society

980 words - 4 pages The Role of Accounting to Business and Society Justin A. Case Strayer University Introduction to Accounting ACC101 Professor Jose Martinez August 27, 2013 Introduction In today’s economy Accounting plays a huge role, as it points or refers to accountability and transparency in the business environment and paints a picture of any business. Also, it enables business managers and corporate leaders to make better comprehensive decisions

The Role Of Religion In Medieval Society

542 words - 3 pages Andres Contreras Civilizations II Second essay October 9, 2013 The Role of Religion and Church during Medieval and Renaissance Society The role of religion and church was very influential during The Middle Ages and Renaissance society. They possessed a great deal of power that couldn’t be taken away by any ruler. In fact, the church was a counter to kings who wanted absolute power. Any king who wished to rule must have the church on

The Role Of Education In Society

493 words - 2 pages Marxist considers education as an important part of the superstructure of society; along with the other institution i.e. Family, Media, Religion etc. It serves the needs of the economic base, which contains everything to do with the production of society. Marxists believe that education performs two main functions in a capitalist society: Reproduces the inequalities and social relations of production of capitalist society, It serves to

“The Role Of Women As Entrepreneurs And Business Leaders In Saudi Arabia: Business And Ethical Implications”

2411 words - 10 pages confirm how despite the fact that Saudi Arabia is now considered as a growing economy which is trying to diversify its exports, mainly based on oil and natural gas, by framing and revising its legal and regulatory environment in order to foster entrepreneurship activities and the private sector interest. It leads to growing concern about the role of women in the economic environment, with legal and ethical consideration of the women’s role in