Accounting Practices Description
Accounting has been defined as the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information.
What You Will Learn
- How to provide a record of assets owned, amounts owed to others and monies invested;
- The financial position of an organization and the profitability of its operations.
- How to helps management actually manage the organization
- Provides a way of measuring an organization’s effectiveness
- How to helps stakeholders monitor an organisations activities and performance
- Enables potential investors or funders to evaluate an organisation and make decisions
- Collection in money terms of information relating to transactions that have resulted from business operations
- Recording and classifying data into a permanent and logical form. This is usually referred to as "Book-keeping"
- Summarizing data to produce statements and reports that will be useful to the various users of accounting information - both external and internal
- Interpreting and communicating the performance of the business to the management and its owners
- Forecasting and planning for future operation of the business by providing management with evaluations of the viability of proposed operations. The key forecasting and planning tool is the "Budget"