Thoughts And Expressions On Subjects And Topics That Matters

   Financial accounting includes the rules and procedures to convey financial information about an organization. Individuals who attain a sound knowledge of financial accounting can utilize this information to make decisions based on the organization’s perceived financial health and outlook. Such decisions might include assessing employment potential, lending money, granting credit, and buying or selling ownership shares. However, financial accounting does not address issues that are purely of an internal nature, such as whether an organization should buy or lease equipment or the level of pay raises. Information to guide such internal decisions is generated according to managerial accounting rules and procedures that are introduced in other books and courses. Despite not being directed toward the inner workings of an organization, employees are interested in financial accounting because it helps them assess the future financial prospects of their employer.

    Simply, accounting is nothing but recording of all the transactions relating to business. Accountancy introduces you to the fundamentals of accounting and it's importance to the world of business. Accountancy is an information science used to study, analyzes, collect, classify and manipulate financial data of a business or any other organization. Topics covered include financial accounting, accounting for partnership companies and firms, financial statement analysis, etc.

Need For Accounting:
  1. First, the magnitude of the affairs of the business are constantly increasing and it would be impossible and improbable to think in terms of just remembering everything or managing by simply noting down some things in a pocket note book as he had been doing till that time.
  2. Secondly, proper accounting makes books of accounts reliable and acceptable to the outer world, interested parties and government.
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