Financial accounting notes pdf for bba
Type or paste a DOI name into the text box. Accounting is facilitated by accounting organizations such as standard-setters, accounting firms and professional bodies. The history of accounting is financial accounting notes pdf for bba of years old and can be traced to ancient civilizations.
Both the words accounting and accountancy were in use in Great Britain by the mid-1800s, and are derived from the words accompting and accountantship used in the 18th century. The word was formerly written in English as “accomptant”, but in process of time the word, which was always pronounced by dropping the “p”, became gradually changed both in pronunciation and in orthography to its present form. Financial accounting focuses on the reporting of an organization’s financial information to external users of the information, such as investors, potential investors and creditors. Financial accounting produces past-oriented reports—for example the financial statements prepared in 2006 reports on performance in 2005—on an annual or quarterly basis, generally about the organization as a whole. This branch of accounting is also studied as part of the board exams for qualifying as an actuary. It is interesting to note that these two professionals, accountants and actuaries, have created a culture of being archrivals. Management accounting focuses on the measurement, analysis and reporting of information that can help managers in making decisions to fulfill the goals of an organization.
Management accounting produces future-oriented reports—for example the budget for 2006 is prepared in 2005—and the time span of reports varies widely. Such reports may include both financial and non financial information, and may, for example, focus on specific products and departments. Auditing is the verification of assertions made by others regarding a payoff, and in the context of accounting it is the “unbiased examination and evaluation of the financial statements of an organization”. An audit of financial statements aims to express or disclaim an opinion on the financial statements. An accounting information system is a part of an organization’s information system that focuses on processing accounting data. Tax accounting in the United States concentrates on the preparation, analysis and presentation of tax payments and tax returns. Depending on its size, a company may be legally required to have their financial statements audited by a qualified auditor, and audits are usually carried out by accounting firms.
Accounting firms grew in the United States and Europe in the late nineteenth and early twentieth century, and through several mergers there were large international accounting firms by the mid-twentieth century. Organizations in individual countries may issue accounting standards unique to the countries. At least a bachelor’s degree in accounting or a related field is required for most accountant and auditor job positions, and some employers prefer applicants with a master’s degree. A doctorate is required in order to pursue a career in accounting academia, for example to work as a university professor in accounting.
Professional accounting qualifications include the Chartered Accountant designations and other qualifications including certificates and diplomas. Accounting research is research in the effects of economic events on the process of accounting, and the effects of reported information on economic events. Accounting research is carried out both by academic researchers and practicing accountants. This section includes a list of references, related reading or external links, but its sources remain unclear because it lacks inline citations.
Many accounting practices have been simplified with the help of accounting computer-based software. Accounting information systems have reduced the cost of accumulating, storing, and reporting managerial accounting information and have made it possible to produce a more detailed account of all data that is entered into any given system. The Enron scandal deeply influenced the development of new regulations to improve the reliability of financial reporting, and increased public awareness about the importance of having accounting standards that show the financial reality of companies and the objectivity and independence of auditing firms. In addition to being the largest bankruptcy reorganization in American history, the Enron scandal undoubtedly is the biggest audit failure. Oxley Act in the United States 2002, as a result of the first admissions of fraudulent behavior made by Enron. Committee on Accounting Procedure, American Institute of Accountants. Evaluations of Accounting Journal and Department Quality.
Auditors: Market concentration and their role, CHAPTER 1: Introduction”. Action at a Distance and the Development of Accounting. Translated from Russian by Grantovsky, E. Dobie, Alisdair: Themes in the history of bookkeeping, The Routledge Companion to Accounting History, London, July 2008, ISBN 978-0-415-41094-6, Chapter 5, p.