| Accounting is the guide post for management. A | | | | ledgers. These records are essentially historical in |
| firm should know the financial implications of its | | | | nature, as the events recorded are the ones |
| operations. The financial score of the firm is kept | | | | which have already occurred. Accounting also |
| by the accounting system. It points out the | | | | performs the measurement function. It assigns |
| problems faced or likely to be faced by the firm. | | | | monetary values (for example, dollars or pounds) |
| It also brings to its notice opportunities that are | | | | to economic events. While performing the |
| likely to arise. It indicates possible action, when | | | | measurement function, it acts in accordance with |
| needed. | | | | the generally accepted principles. Some economic |
| Accounting may be defined as the process of | | | | events cannot be measured accurately, they are |
| identifying, measuring and communicating | | | | estimated. Accounting is the language of business. |
| economic information to permit informed | | | | Therefore, the information accumulated and |
| judgments and decisions by users of the | | | | measured by this system should be periodically |
| information. The objectives of accounting are to | | | | communicated to the users. The information is |
| provide information for the following purposes: | | | | communicated through statements and reports. |
| 1) Making decisions concerning the use of | | | | The financial statements and reports should be |
| limited resources, including the identification of | | | | reliable and accurate. Standard criteria, such as full |
| crucial decision areas and determination of | | | | disclosure, materiality, consistency, conservatism |
| objectives and goals. | | | | and fairness, should be adhered in this |
| 2) Effectively directing the controlling of | | | | communicating information to the users. |
| an organization’s human and material | | | | The basis for financial planning, analysis and |
| resources. | | | | decision making is the financial information. Financial |
| 3) Maintaining and reporting on the | | | | information is needed to predict, compare and |
| custodianship of resources | | | | evaluate the firm’s earning ability. It is also |
| 4) Facilitating social functions and controls. | | | | required to aid in economic decision making like |
| The main objective of accounting is to provide | | | | investment and financing decision making. The |
| information to the users to make relevant | | | | financial information of an enterprise is contained in |
| decisions and form judgments. Besides decision | | | | the financial statements or accounting reports. |
| making, the control and custodianships of | | | | You can clearly understand by reading the |
| accounting are also important. It also has social | | | | previous paragraphs the importance of accounting |
| obligations as the accounting information is used | | | | as a decision making and controlling tools of |
| by many people such as customers, employees, | | | | business. Accounting essay deals with different |
| government, investors or society. | | | | aspects of this subject. Thorough research and |
| In providing information to the users, accounting | | | | good amount of knowledge about different |
| has to perform three functions:a) | | | | accounting systems and financial matters is |
| accumulation of information b) measurement of | | | | extremely essential for writing a good accounting |
| information and c) communication of information. | | | | essay. As a college student you need to give |
| The accounting system identifies and gathers | | | | serious effort to write a quality paper in this |
| data. The process of data accumulation involves | | | | subject but it is very rewarding also as the |
| the recording and analysis of economic events. | | | | person with good knowledge in this subject is |
| The accounting records include journals and | | | | highly sought after in the industry. |