What is accounting? Is it the same for all types of organizations?

Список вопросов:

What is accounting? Is it the same for all types of organizations?

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. Every organization – profit, nonprofit, charitable, religious, or governmental – requires the services of accountants in providing accounting information. And they are different. For example, Public accountants provide accounting services to other companies. Private accounting refers to the internal accounting departments you would find in large companies.

 

What kind of accounting information assists the internal users? How many functions does it fulfill?

Managerial accounting provides the information for manager’s decisions. In form, managerial accounting information may be general (for use in long- range planning) or detailed (for use in cost control). The uses of managerial accounting information are varied, ranging from decision making by managers charged with successful operations of the specific division to which the information relates to planning in both the long and short range.

For internal use by management, managerial accounting information generally is narrow in focus. It usually relates to a part of the company’s operation.

How can managerial information be used?

  Accounting information is used in the control process as a means of communication, motivation, attention-getting, and appraisal.

What types of decisions do usually managers make?

The decisions managers make can be classified into four major types: financing decisions, resource allocation decisions, production decisions and marketing decisions.

What is budgeting? What is its main objective? Is it the same as planning?

Budgeting is the process of planning the overall activity of the organization for a specified period of time, usually a year. A primary objective of budgeting is to coordinate the separate plans made for various segments of the organization so as to assure that these plans harmonize with one another. Budgeting is An important form of planning. Planning is the process of deciding what actions should be taken in the future. Planning involves making decisions. Accounting information is especially useful in the analysis step of the decision-making process.

What steps must each manager undertake in order to achieve the planned results?

Making plans does not in itself ensure that the plans will be implemented. In the case of the annual budget, each manager must take actions to provide the human and other resources that will be needed to achieve the planned results. Each manager must also make more detailed implementation plans than are encompassed in the approved budget. Although much of this activity is routine, the manager also must react to unanticipated events, changing previous plans as necessary to adjust for the new conditions.

In what way is accounting information connected with the control process?

It is the managers’ responsibility to see that the work is done, and done properly, by the employees of the organization. The process the managers use to assure that the employees perform properly is called control. Accounting information is used in the control process as a means of communication, motivation, attention-getting, and appraisal.

Under what circumstances do some countries use replacement cost accounting? What does it value?

Some countries with regular high inflation use replacement cost accounting, which values all assets at their current replacement cost – the amount that would have to be paid to replace them now.

What do auditors check?

Auditors review the financial statements that their clients compile and certify that they are based on generally accepted accounting principles, and that they are free of material misstatements.

Ст 165 в ENVIRONMENT

 Many firms earn their revenues by selling their customers tangible goods. Others, called service firms or businesses, earn their revenues in the form of fees or commissions by rendering various types of services to customers. Other types of services generate revenues for other firms – earned interest by banks and small credit organizations, the premiums received by insurance companies, the admissions charged by theaters, or the rents.

 

The expenses incurred can be classified into a

number of categories that differ among firms. Common expense

categories are wages and salaries, utilities electricity, gas, oil, telephone, and water, insurance, taxes both on property and on income or earnings, supplies used, advertising, and interest.

 

 

Список вопросов:

What is accounting? Is it the same for all types of organizations?

Accounting is the process of recording financial transactions pertaining to a business. The accounting process includes summarizing, analyzing and reporting these transactions to oversight agencies, regulators and tax collection entities. Every organization – profit, nonprofit, charitable, religious, or governmental – requires the services of accountants in providing accounting information. And they are different. For example, Public accountants provide accounting services to other companies. Private accounting refers to the internal accounting departments you would find in large companies.