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Accounting and It Implications

In: Computers and Technology

Submitted By phoebepecson
Words 2247
Pages 9
General objective: The purpose of the study is to determine the relationship between accounting and information technology subject towards the developing world of business .

Accounting, as defined by Webster, is a theory and system of setting up, maintaining, and auditing the books of a firm. Every business needs to have two prime objectives, such as, to earn profit and to remain solvent and the information in relation to these objectives while ensuring whether they are being accomplished is provided by accounting. Accounting is important in the sense that it enables a business house to maintain complete and orderly prepared records of economic events by way of preparing books while facilitating the information for various purposes. Furthermore it helps to ascertain the net results in terms of profit or loss (Income Statement) and providing the information about financial position of the business (Balance Sheet) to the owners of a business relating to what the entity owns in the form of assets and what it owes in the form of liabilities at a particular point of time. Accounting information is valuable to the concerned managers too so as to ensure whether the business entity is being directed as it should be, and simultaneously it is a means to provide the information to the investors to find out the future prospects of business. It is also useful for the employees and customers in order to know the condition of the business entity. (http://dictionary.reference.com/browse/accounting)
According to Fareed Siddiqui , a Member of Institute of Management Consultants of India, Accounting is very much connected with our personal lives in so far as it is in respect of every business. We all with intent or unknowingly generate accounting ideas in a way when we plan what we will do with money. We need to plan how much money will be spent whilst how much of it will be kept

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