Custom Search

(3)-SCOPE OF ACCOUNTING

Sunday, October 18, 2009


Scope of Accounting

Management Accounting and Cost Accounting
Management or cost accounting is a management information system which analysis data to provide information as a basis for managerial action. The concern of a management accountant is to present accounting information in the form most helpful to management.
Financial Accounting
Financial accounting is mainly a method of reporting the results and financial position of a business. It is not primarily concerned with providing information towards the more efficient conduct of a business.
This is particularly clear in the context of the published accounts of limited companies. Accounting standards and public law prescribe that a company should produce accounts to be presented to the shareholders.

Financial Management
The financial manager is responsible for raising finance and controlling financial resources. Including the following decisions
(a). Should the firm borrow from a bank or raise funds by issuing shares?
(b). How much should be paid as a dividend?
(c). Should the firm spend money on new machinery?
(d). How much credit should be given to customers?
(e) .How much discount should be given to customers who pay early?

Auditing

The annual accounts of a company must generally be audited by a person independent of a company. In practice, this often means that the members of the company appoint a firm of registered auditors to investigate the financial statements and report as to whether or not they show a true and fair view of the company’s results for the year and its financial position at the end of the year.
Qualities of Good Accounting Information
Below are some features that accounting information should have if it is to be useful,

  • Relevance.
  • Comprehensibility.
  • Reliability.
  • Completeness.
  • Objectivity.
  • Timeliness.
  • Comparability.

3 comments:

aliya seen said...

This is quite interesting blog! keep posting such an amazing blog for all viewers. sop for mba

Shapath Das said...

If you are looking for a job you should already be aware of the fact that a resume can be the most effective tool in landing the job of your dreams, or any job for that matter. Resumes can be hard to write for a variety of reasons.readmission letter format

so wonderful post . i'm looking for this post.

Post a Comment

About Me

My Photo
Management Consultant.
Financial management and business management specialist.
View my complete profile

WELCOME

WELCOME ALL.....................................................,

If you have any problems regarding accounting please comment in this site and let we know SURELLY WE ANSWERED...................................,