Skip to main content

1. The purpose and scope of accounting in complex operating systems

Accounting helps an organization to achieve its goals and objectives by collecting, classifying, and communicating the relevant information with the stakeholders about the transactions that took place within the firm during a specific period in the organization. The scope of financial accounting is to assess on asset formation, economic and financial stability, and legal economic relationships in the business environment. It reflects on the objective for the preparation of financial statements.


Accounting is the backbone of a business. All businesses have basic data that is recorded with the role of finding the organizations financial stabilization. Simply, even though accounting is not business, it is a vital part of the business environment. The role of accounting in the current economy is a vital one, as is the purpose of accounting in modern business to understand the financial position and to know if the organization is receiving an adequate profit (Hai Thanh Nguyen, 2021).






Comments

Post a Comment

Popular posts from this blog

3. Main branches of accounting and job skillsets and competencies

Branches of Accounting:  Financial Accounting: Controls the financial recordings and the transactions that took place in the firm through financial statements and provides it to the interested stakeholders for decision making process.  Management Accounting: Management accounting provides information for use by internal use, that is the management of the company to produce budgeting and forecasting, cost analysis and make decisions accordingly.    Cost Accounting: Treated as a secondary management accounting, it refers to the recording, presenting and analyzing of manufacturing costs, every cost that took place during the manufacturing process is recorded, standards and principles that help organizations to come up with budgets for controlling costs in a cost-effective manner (Neha de, 2022).  Skillsets:  Analytical skills: Accountants must consist of profound financial records to make sure that every attribute is up to date. Otherwise, their analysis ...
Post a Comment
Read more